BM KID O Sharehol Januar (In Philip
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
what are the correct journal entries and computations?
Transcribed Image Text:1 Shown below is the shareholders' equity of BM KID Corporation on January 1, 2021:
2
3
BM KID Corpotation
4
Shareholders' Equity
January 1, 2021
6
(In Philippine Peso)
8 Pain-in Capital
9
10% Preference Share Capital, 20,000 authorized, 15,000 shares issued of which 1,000 shares are in Treasury
1,500,000
10
Subscribed Preference Share Capital, 2,000 Shares
200,000
11
Subscription Receivable - Preference Shares
100,000
100,000
12
Ordinary Share Capital, 50,000 shares authorized, no par value but with P50 stated value, 30,000 shares issued
1,500,000
13
Subscribed Ordinary Shares, 5000 shares
250,000
14
Subscription Receivable - Ordinary Shares
100,000
150,000
15 Additional Paid-in Capital
16
Preference Share Premium
340,000
17
Paid in Capital in excess of Ordinary Share Stated Value
350,000
18 Total Paid-in Capital
19 Accumulated Profits
20 Total SHE before Treasury Shares
21 Treasury Shares, 1,000 Preference shares at cost
22 Total Shareholders' Equity
3,940,000
1,200,000
5,140,000
(115,000)
5,025,000
23
24 Tha following equity transactions took place during January 2021.
25 Jan
2 Re-issued 500 Preference Treasury Shares at P125 per share.
26
27
3 Received subscription to 2,000 ordinary shares at P60 per share, with 50% down payment, balance due on 30 Jan 2021.
28
5 Collected in full the account of preference subscribers, except for the balance of 700 shares of Jay Cruz amounting to P40,000.
29
Issued corresponding stock certificates to fully paid subscribers.
30
10 Re-issued the remaining 500 Preference Treasury Shares at P110 per share.
15 Declared the subscription of Jay Cruz as delinquent; paid P2,000 for the online advertisement of the auction of the shares.
31
32
17 Collected in full the balance on 5,000 subscribed ordinary shares; issued the corresponding stock certitificates.
33
20 Re-acquired 1,200 Preference shares at P125 per share.
34
25 Received bids for the delinquent subscription of Jay Cruz as follows:
35
Pepe Castro, 500 shares
36
Pilar Cinco, 420 shares
Pete Co, 400 shares.
37
The highest bidder paid the "offer price" including P200 interest on overdue subscription of Jay Cruz; corresponding stock certificates were issued.
38
39 27 Re-issued 500 Preference Treasury shares at P110.
40
2n Re-acquired and retired 300 ordinary shares at P125 per share.
41
42
43
Transcribed Image Text:1 Shown below is the shareholders' equity of BM KID Corporation on January 1, 2021:
2
3
BM KID Corpotation
4
Shareholders' Equity
January 1, 2021
6
(In Philippine Peso)
8 Pain-in Capital
9
10% Preference Share Capital, 20,000 authorized, 15,000 shares issued of which 1,000 shares are in Treasury
1,500,000
10
Subscribed Preference Share Capital, 2,000 Shares
200,000
11
Subscription Receivable - Preference Shares
100,000
100,000
12
Ordinary Share Capital, 50,000 shares authorized, no par value but with P50 stated value, 30,000 shares issued
1,500,000
13
Subscribed Ordinary Shares, 5000 shares
250,000
14
Subscription Receivable - Ordinary Shares
100,000
150,000
15 Additional Paid-in Capital
16
Preference Share Premium
340,000
17
Paid in Capital in excess of Ordinary Share Stated Value
350,000
18 Total Paid-in Capital
19 Accumulated Profits
20 Total SHE before Treasury Shares
21 Treasury Shares, 1,000 Preference shares at cost
22 Total Shareholders' Equity
3,940,000
1,200,000
5,140,000
(115,000)
5,025,000
23
24 Tha following equity transactions took place during January 2021.
25 Jan
2 Re-issued 500 Preference Treasury Shares at P125 per share.
26
27
3 Received subscription to 2,000 ordinary shares at P60 per share, with 50% down payment, balance due on 30 Jan 2021.
28
5 Collected in full the account of preference subscribers, except for the balance of 700 shares of Jay Cruz amounting to P40,000.
29
Issued corresponding stock certificates to fully paid subscribers.
30
10 Re-issued the remaining 500 Preference Treasury Shares at P110 per share.
15 Declared the subscription of Jay Cruz as delinquent; paid P2,000 for the online advertisement of the auction of the shares.
31
32
17 Collected in full the balance on 5,000 subscribed ordinary shares; issued the corresponding stock certitificates.
33
20 Re-acquired 1,200 Preference shares at P125 per share.
34
25 Received bids for the delinquent subscription of Jay Cruz as follows:
35
Pepe Castro, 500 shares
36
Pilar Cinco, 420 shares
Pete Co, 400 shares.
37
The highest bidder paid the "offer price" including P200 interest on overdue subscription of Jay Cruz; corresponding stock certificates were issued.
38
39 27 Re-issued 500 Preference Treasury shares at P110.
40
2n Re-acquired and retired 300 ordinary shares at P125 per share.
41
42
43
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