Blue Corporation has 50,000 shares of P10 par ordinary shares authorized. The following transactions took place during 2022, the first year of the corporation’s existence: Sold 5,000 ordinary shares for P18 per share. Issued 5,000 ordinary shares in exchange for a patent valued at P100,000.   At the end of the Blue’s first year, total contributed capital amounted to?

Q: On January 01, 2022, DEF Company provided the following information:    Ordinary share capital,…

A: Diluted earning per share- Diluted earnings per share (EPS) informs existing equity investors of the…

Q: Gaddy Company has 50,000 ordinary shares authorized with P10 par value. The following transactions…

A: Contributed capital includes the total value of the capital of the company, by issuing common stock…

Q: Relay Company is permitted to issue 500,000 ordinary shares of P10 par value. During the first year…

A: Contributed Capital is the total amount contributed by the owners and also includes  shares premium.…

Q: The ABC Corp, was organized on September 1, 2022 with authorized capital of 1,000,000 shares of P50…

A: Dividend per share: Dividend per share is calculated for Preferred stock as well as Common Stock.…

Q: At the beginning of the current year, Relay Company was organized and authorized to issue 100,000…

A: Shareholders equity is the amount that the owner has invested in the business including retained…

Q: On November 16, 2027, XYZ Company purchased 17,000 shares (representing 12%) of Company C stock for…

A: Unrealized losses are losses that have not yet been liquidated but whose value has decreased. When a…

Q: Assume the year runs from January 1 to December 31. On 1 January 2020, David Corporation was…

A: Authorized Shares- It is the sum of all those shares up to which company have right to issue them in…

Q: Lompany was organzed in 2022 with authorized capitalization of 500,000 ordinary shares with PI50 par…

A: Ordinary shares are shares having participating rights. These…

Q: record all the above journal transactions

A: Issue of shares is one of important source of finance being used in business. There can be common…

Q: 4. MANGO Company acquired 4,000 shares of KIWI Corporation ordinary shares on April 2, 2020 at a…

A: Held for trading investments are those, which are purchased for the purpose of selling in the short…

Q: ABC Company issued 50,000 shares for P100 per share. Par value of the shares is P10. During the…

A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…

Q: During its first year of operations, Cupola Fan Corporation issued 34,000 of $1 par Class B shares…

A: According to the given question, we are required to prepare the journal entries. Journal entries:…

Q: 28

A: First of all we need to understand the meaning of legal capital  Legal capital is the sum total of…

Q: . Akea Corp., reports this journal entry on May 15, 2020: Cash 75,000      Ordinary Share Capital…

A: Par value of share capital: The par value of a single ordinary share is determined by the statute of…

Q: 1. How much is the Ordinary Share Capital at year end?  2. How much is the Preference Share Capital…

A: Treasury shareThe company issues shares to the public to raise capital and funds. When a company…

Q: OSE Corporation's articles of incorporation provides for the issuance of 100,000 ordinary shares.…

A: The dividend is the distribution of the portion of profit earned by the company. The dividend is…

Q: The following transactions occurred in the order given, during 2023 la) 1210 subscriptions were sold…

A: A journal is made to record all business transactions. All the financial transactions are recorded…

Q: 1st Jan-31 Dec reporting period Year 2022: At the beginning of the reporting period, it has $5…

A: Rights issue refers to the an offer to subscribe to the newly issued shares by the existing…

Q: JJJ Company provided the following information: Net income for 2020 11,000,000 Net income for 2021…

A: A theoretical ex-rights price is the market price that a stock will theoretically have following a…

Q: DEF Corporation was authorized to issue 500,000 shares, P50 par value ordinary share capital on…

A: Journal entry for issue of share capital shall be passed on 1. Application money received- journal…

Q: Prepare journal entries. 1 Record the issue of common shares to promoters.   2 Record the issue of…

A: Journal Entries of Trio Networks Corporation’s for 2020

Q: Barry corporation has 100,000 shares of $10 par, stock authorized. The following transactions took…

A: Total paid in capital  = common stock  + additional  paid in capital

Q: Jones Company reported the following shareholders’ equity on January 1, 2020: • Share capital, P5…

A: The share premium is the excess value received as compared to par value of shares.

Q: VIP Corporation's first year of operations had the following transactions: 2020 Jan. 15 Issued 2,000…

A: On issuing the shares in the market, the stock account is credited by the par value of the shares…

Q: The ABC Corp. was organized on September 1. 2022. with authorized capital of 1,000,000 shares of P50…

A: Dividend - Dividend is the amount of money distributed to the shareholders of the company. Dividend…

Q: Windsor Corporation is authorized to issue 250,000 shares of $1 par value common stock. During 2025,…

A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…

Q: On January 31, 2022, Parent Company purchased all the identifiable net assets of Sub Company by…

A: A sort of payment known as contingent consideration is one that is made in exchange for the…

Q: 1. On 31 December 2020 a company's capital structure was as follows: Ordinary share capital OMR…

A: The journal entries for recording the rights issue, issue of bonus shares and the abstract of…

Q: The authorized capital of the company was OMR 3,000,000 divided into shares of OMR 1 each. The…

A: Equity share capital refers capital which is raised by a corporation by offering shares.

Q: Concord Corporation has 100000 shares of $10 par common stock authorized. The following transactions…

A: Solution:- Calculation of the Concord’s first year, total paid-in capital as follows under:-

Q: - Post all transactions and determine the account balance of the Stock Investments account.

A: Stock investment involves purchasing shares of ownership in a company, entitling the investor to a…

Q: alem's Company issued 100,000 shares of $1 par value ordinary shares at a price of $10 per share. In…

A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Q: Sherbrooke Corporation has an unlimited number of common shares authorized and 80,000 common shares…

A: TREASURY SHARE  Treasury Stock are those shaes which is previously outstanding stock that has been…

Q: How much is the Ordinary Share Capital at year end? 2. How much is the Preference Share Capital at…

A: Ordinary Share Capital:The total sum of money that a business raises from both public and private…

Q: General Mills is authorized to issue 13 million, $1 par common shares. During 2021, its first year…

A: Introduction: Common shares normally provide shareholders the right to vote at shareholder meetings.…

Q: Jerico Corporation was organized on January 1, 2021 with authorized capital of P2,000,000 consisting…

A: Subscribed stocks seem to be stocks that buyers or investors have agreed to acquire. These stocks…

Q: 4. SMC Corp. exchanges a piece of land for 10,000 shares of Nestle Co. ordinary share capital that…

A: At least Minimum 25% of Authorised capital shall be paid for subscription.  Authorized capital =…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.