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The Amelia Corporation was incorporated on January 1, 2021, with the following authorized capitalization: 40,000 ordinary shares, no par value, stated value P40 per share; 10,000 shares of 5 percent cumulative
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- This company was incorporated as a new business on January 1, 2019. The company is authorized to issue 50,000 shares of $5 par common stock and 10,000 shares of 6%, $10 par, cumulative, participating preferred stock. On January 1, 2019, the company issued 8,000 shares of the common stock for $15 per share and 2,000 share of the preferred stock for $30 per share. Net income for the year ended December 31, 2019 was $375,000.Refer to Lanier Tech. What is the number of the company's unissued shares of common stock at December 31, 2019? a.40,000 b.6,000 c.8,000 d.42,000Pearl Holdings Inc. was incorporated on July 1, 2020 with authorized share capital of 1,000,000 common shares and 500,000 preferred shares, convertible to common shares at a rate of 10 common shares for each preferred share. The preferred shares have a $20 par/stated value. Pearl had the following transactions related to share capital during the next few years. Jul. 1 Issued 100,000 common shares for $4 each. Jul. 1 Issued 5,000 preferred shares for $35 each. Aug. 15 Issued 10,000 common shares for legal services received, valued at $25,000. Sept. 1 Issued 5,000 common shares at $2.25 each in exchange for equipment received. Nov. 15 Reacquired 15,000 common shares for $3 each. Dec. 18 Converted 2000 preferred shares to common shares Complete the journal entries for above dates.Marin Corporation is authorized to issue 54,000 shares of $ 5 par value common stock. During 2020, Marin took part in the following selected transactions. 1. Issued 5,200 shares of stock at $ 42 per share, less costs related to the issuance of the stock totaling $ 5,900. 2. Issued 1,000 shares of stock for land appraised at $ 54,000. The stock was actively traded on a national stock exchange at approximately $ 43 per share on the date of issuance. 3. Purchased 460 shares of treasury stock at $ 43 per share. The treasury shares purchased were issued in 2016 at $ 40 per share. (a) Prepare the journal entry to record item 1. (b) Prepare the journal entry to record item 2. (c) Prepare the journal entry to record item 3 using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No.…
- Madona Ltd. begins operations on March 1, 2020, by issuing 1,500,000 shares of $5 par value ordinary shares for cash at $10 per share. The company is authorized to issue 2 million ordinary shares.On April 15, 2020, Madona Ltd. issues 10,000, 4% $20 par value preference shares to attorneys in settlement of their bill of $700,000 for organization costs. The company is authorized to issue 500,000 preference shares.On October 1, 2020, Madona acquires 500,000 shares of its stock at $12 per share. On November 1, 2020, Madona sell 200,000 shares of its treasury stocks at $13 per share. On December 1, 2020, Madona sell another 200,000 treasury stocks at $10.5 per share. At the end of its first year of operation, Madona reported a net income of $500,000. On December 22, 2020, Madona declares a 1% stock dividend and on this day, the stock market value of ordinary shares is $10 per share. On December 31, 2020, the company distributes the stock dividends. Prepare the equity section of Madona Ltd…What is the journal entry for the authorization to issue shares?Estefan Corp. is authorized by its charter from the state of Wisconsin to issue 750 shares of preferred stock with a 7% dividend rate and a par value of $50 per share and 22,000 shares of common stock with a par value of $0.01 per share. On January 1, 2019, Estefan Corp. issues 250 shares of preferred stock at $55 per share and 12,200 shares of common stock at $13 per share. Prepare the journal entry to record the issuance of the stock.
- LALALAND Corporation was organized on 1/1/2020. It was authorized to issue 2 million, $1 par, common stock. During the year, the company had the following transactions: January 5- Issued 400,000 common shares for cash, at $ 1.00 each. February 7- issued 250,000 common shares for cash, at $ 1.50 each. April 3- Reacquired 10,000 of its common shares, by paying $ 3,00 per share. June 17- Sold 5,000 of its treasury stock, at a price of $ 4,00 per share. September 20- Sold all the remaining treasury stock it has, at a price of $ 3.2 per share. October 30- Reacquired 20,000 of its common shares, at $ 2.5 per share. Question: If you know that Retained Earnings are $ 60,000, What is the dollar value of Total Stockholders' Equity, at year end?Jackson Inc. is authorized to issue an unlimited number of common shares and 15,000, $58 stated value preferred shares, with 9% cumulative dividends. On Jan 1, 2020, Jackson Inc. issued 1000 common shares for $40 per share, and 300 preferred shares for $70 per share. a) How much cash did Jackson Inc. raise on the issuance of the common shares? b) How much cash did Jackson Inc. raise on the issuance of the preferred shares? c) Assuming retained earnings is $120,000 at December 31, 2020. What is the total amount of shareholders’ equity to be reflected in the December 31, 2020 statement of financial position of Jackson Inc?Swifty Corporation is authorized to issue 250,000 shares of $1 par value common stock. During 2020, Swifty Corporation took part in the following selected transactions. 1. Issued 52,000 shares of stock at $73 per share, less costs related to the issuance of the stock totaling $28,600. Issued 12,000 shares of stock for land appraised at $942,000. The stock was actively traded on a national stock exchange at $75 per share on the date of issuance. 2. 3. Purchased 6,200 shares of treasury stock at $71 per share. The treasury shares purchased were issued in 2009 at $48 per share. (a) Prepare the journal entry to record item 1. (b) Prepare the journal entry to record item 2. (c) Prepare the journal entry to record item 3 using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit (a) (b)…
- Hammond Manufacturing Inc. was legally incorporated on January 2, 2023. Its articles of incorporation granted it the right to issue an unlimited number of common shares and 100,000 shares of $14.40 non-cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations: 2023 Jan. Mar. Dec. 12 Issued 40,000 common shares at $4.80 each. 20 Issued 6,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $36,000. 31 Issued 80,000 common shares in exchange for land, building, and equipment, which have fair market values of $360,000, $480,000, and $48,000, respectively. 4 Purchased equipment at a cost of $8,160 cash. This was thought to be a special bargain price. It was felt that at least $10,800 would normally have had to be paid to acquire this equipment. 31 During 2023, the company incurred a loss of $96,000. The Income Summary account was closed. 2024…Jerico Corporation was organized on January 1, 2021 with authorized capital of P2,000,000 consisting of 100,000 ordinary shares, P20 par value. Subsequently, incorporators subscribed for 25,000 shares at P24. How much must be paid up upon subcription to comply with the requirement of the Securities and Exchange Commission? a.) P150,000 b.) P500,000 c.) P125,000 d.) P600,000 SHOW COMPLETE SOLUTIONOn May 2020 GSW was organized with 3,000,000 authorized shares of P10 par value ordinary shares, and 300,000 of its ordinary shares were issued for P3,300,000. Net income through December 31, 2020 was P125,000. On July 23, 2021, when the shares were selling at P13 per share, GSW issued 500,000 of its ordinary shares in exchange of a real estate properties which were fairly valued at P6,250,000. A 5% share dividend was declared on October 2, 2021, to shareholders of record on October 23, 2021. The market value of the ordinary shares was P11 per share on the declaration date. GSW net income for the year ended December 31, 2021 was P350,000. During 2022, GSW had the following transactions: In February, GSW reacquired 15,000 of its treasury shares for P12 per share. In June, GSW sold 15,000 of its treasury shares for P12 per share. In September, each shareholder was issued (for each share held) one right to purchase two additional ordinary shares for P13 per share. The rights shall expire…
