PROBLEM 32:CYPRUS COMPANY began operation on January 1. Authorized were 20,000 shares of P10 par value ordinaryshares and 40,000 shares of 10%, P 100 par value preference shares. The following transactions involvingshareholders' equity occurred during the first year of operations.January 1February 23March 10April 10July 14August 3December 1Issued 500 ordinary shares to the corporation promoters in exchange for property valued atP170,000 and services valued at P70,000. The property had cost the promoters P90,000 3 yearsbefore and was carried on the promoters' books at P50,000.31Issued 10,000 preference shares with a par value of P100 per share. The shares were issued at aprice of P150 per share, and the company paid P75,000 to an agent for selling the shares.Sold 3,000 ordinary shares for P390 per share. Issue costs were P25,000Cordillera Career Development CollegeCOLLEGE OF BUSINESS EDUCATION AND ADMINISTRATIONBuyagan, Poblacion, La Trinidad, Benguet4,000 ordinary shares were sold under share subscription at P450 per share. No shares areissued until a subscription contract is paid in full. No cash was received.Exchanged 700 ordinary shares and 1,400 preference shares for a building with a fair marketvalue of P510,000. The building was originally purchased for P380,000 by the investors and has abook value of P220,000. In addition, 600 ordinary shares were sold for P240,000 in cash.Received payments in full for half of the share subscriptions and payments on account on the restof the subscriptions. Total cash received was P1,400,000. Shares were issued for thesubscriptions paid in full.Declared a cash dividend of P10 per share on preference shares, payable on December 31 toshareholders of record on December 15, and a P20 per share cash dividend on ordinary shares,payable on January 5 of the following year to shareholders of record on December 15.Paid the dividend to preference shareholders.Net income for the first year of operations was P600,000Based on the receding information, calculate the balances of each of the following accounts:1. Preference sharesA. P1,140,000B. P1,000,0002. Share premium - preference sharesA. P425,000B. P90,0003. Ordinary sharesA. P88,000B. P68,0004. Share premium - ordinary sharesA. P3,707,000B. P3,110,0005. Retained earningsA. P310,000B. P600,000C. P1,655,000D. P1,795,000C. P515,000D. P545,000C. P61,000D. P62,000C. P1,920,000D. P3,617,000C. P350,000D. P290,000

"Since you have asked a question with sub-parts more than three, as per guidelines, the first three…

Answered: CYPRUS COMPANY began operation on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Selk Steel Company, which began operations in Year 1, had the following transactions and events in its long-term investments. Year 1 January 5 Selk purchased 60,000 shares (20% of total) of Kildaire's common stock for $1,560,000. October 23 Kildaire declared and paid a cash dividend of $3.20 per share. December 31 Kildaire's net income for the year is $1,164,000, and the fair value of its stock at December 31 is $30.00 per share. Year 2 October 15 Kildaire declared and paid a cash dividend of $2.60 per share. December 31 Kildaire's net income for the year is $1,476,000, and the fair value of its stock at December 31 is $32.00 per share. Year 3 January 2 Selk sold 3% (equal to 1,800 shares) of its investment in Kildaire for $54,200 cash.
Bellows Inc. purchased 10,000 shares of Nesbitt Inc.’s common stock for $7.50 per share. Nesbitt Inc. has 100,000 shares of common stock outstanding. What account and amount is debited by Bellows Inc. to record the investment in Nesbitt Inc.? Assuming that Nesbitt Inc. paid a dividend of $0.40 per share, what account and amount is credited by Bellows Inc. to record the receipt of the dividend? 3 If Bellows Inc. sold 4,000 shares of Nesbitt Inc.’s common stock for $9.00 per share, how much gain on the investment would Bellows Inc. recognize?
On January 15, Pinkney, Incorporated, issued 10,000 shares of $10 par value common stock in exchange for land and a building. Five years ago, the stockholder purchased the land for $40,000 and constructed the building at a cost of $90,000. At the time of the stock issuance, the land and the building had fair market values of $45,000 and $95,000, respectively. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. View transaction list Journal entry worksheet 1 On January 15, Pinkney, Inc., issued 10,000 shares of $10 par value common stock in exchange for land and a building. Five years ago, the stockholder purchased the land for $40,000 and constructed the building at a cost of $90,000. At the time of the stock issuance, the land and the building had fair Note: Enter debits before credits. Date Jan 15 General Journal Debit Credit
Berk Company engaged in the following investment transactions during the current year. April 1 July 1 Bought 40,000 of the 100,000 outstanding shares of Apex Company for $400,000. During the year, Apex Company reported net income of $30,000, and paid dividend of $10,000. Bought a $270 million bond with 8% interest rate. The market interest rate was 6% for bonds of similar risk and maturity. Berk paid $310 million for the bonds. The company will receive interest semiannually on June 30 and December 31. The fair value of the bonds at December 31 was $240 million. Dec 31 Required: 1. Beck has significance influence over Apex's management. On December 31, how much would Berk report as the value of its investment in Apex on the balance sheet? 2. Berk intends to actively trade the bond investment. a. Prepare the journal entries related to the bond on July 1 and on December 31. b. On December 31, how much would Berk report as the value of the bond on The balance sheet Please avoid…
Russell Corp.'s transactions for the year ended December 31, 20X1 included the following:· Acquired 50% of Maxwell Corp.'s common stock for $200,000 cash which was borrowed from a bank.· Issued 5,000 shares of its preferred stock for land having a fair value of $320,000.· Issued 500 of its 11% debenture bonds, due 20X6, for $392,000 cash.· Purchased a patent for $220,000 cash.· Paid $120,000 toward a bank loan.· Sold available-for-sale securities for $796,000. Russell’s net cash provided by financing activities for 20X1 was Question 12 options: $472,000. $560,000. $592,000. $680,000.
Sudoku Company issues 21,000 shares of $9 par value common stock in exchange for land and a building. The land is valued at $231,000 and the building at $377,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.
Yard Spray Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On January 31 of the current year, Yard Spray Ino reacquired 19,700 shares of its common stock at $19 per share. On June 14, 13,400 of the reacquired shares were sold at $25 per share, and on November 23, 5,300 of the reacquired shares were sold at $20. Required: a. Journalize the transactions of January 31, June 14, and November 23. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. c. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? b. What is the balance in Treasury Stock on December 31 of the current year? d. How will the balance in Treasury Stock be reported on the balance sheet?
Sudoku Company issues 25,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $240,000 and the building at $376,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.
Fullhouse Company began operations on January 1, 2013. Authorized were 100,000 ordinary shares of P100 par value and 50,000 convertible preference shares of 10% P100 par value. The following transactions involving shareholders’ equity occurred during the first year of operations. January 1 – Issued 10,000 ordinary shares to the promoters in exchange for land valued at P2,500,000 and services valued at P500,000. The property had cost the promoters P1,800,000 three years before and was carried on their books at P1,500,000 February 20 – Issued 15,000 preference shares for P120 per share. Each share can be converted to 5 ordinary shares. The entity paid P50,000 to an agent for selling the shares March 10 – Sold 25,000 ordinary shares for P260 per share. Issue costs amounted to P200,000 April 1 – Sold 20,000 ordinary shares under share subscriptions at P350 per share. No share certificates are issued until a subscription contract is paid in full. No cash was received. July 15 –…
Rios Co. is a regional insurance company that began operations on January 1, 20Y2. The following selected transactions relate to investments acquired by Rios Co., which has a fiscal year ending on December 31: Record these transactions on page 10: 20Y2 Feb. 1 Purchased 6,600 shares of Caldwell Inc. common stock at $43 per share plus a brokerage commission of $660. Caldwell has 100,000 shares of common stock outstanding. May 1 Purchased securities of Holland Inc. as a trading investment for $82,998. July 1 Sold 3,430 shares of Caldwell Inc. for $41 per share less a $115 brokerage commission. 31 Received an annual dividend of $0.25 per share on 3,170 shares of Caldwell Inc. stock. Nov. 15 Sold the remaining shares of Caldwell Inc. for $44 per share less a $95 brokerage commission. Dec. 31 The trading securities of Holland Inc. have a fair value on December 31 of $74,343. Record these transactions on page 11: 20Y3 Apr. 1 Purchased…
Yard Spray Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On January 31 of the current year, Yard Spray Inc. reacquired 19,600 shares of its common stock at $19 per share. On June 14, 13,700 of the reacquired shares were sold at $25 per share, and on November 23, 4,700 of the reacquired shares were sold at $20. Required: a. Journalize the transactions of January 31, June 14, and November 23. b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? What is the balance in Treasury Stock on December 31 of the current year? How will the balance in Treasury Stock be reported on the balance sheet?
Sudoku Company issues 19,000 shares of $6 par value common stock in exchange for land and a building. The land is valued at $238,000 and the building at $373,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.

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