Required:1.Prepare memorandum entries to record the foregoing transactions.2.Prepare the Shareholder’s equity section of the statement of financial position as at March 31,2018 Share Issuances for Cash and Non-Cash Considerations0n Jan. 1, 2018, the following accounts and their balances appeared in the ledger ofFuentes Corporation:Preference P9 Shares, P100 par, 10,000 sharesauthorized, 5,000 shares issuedShare Premium-PreferenceOrdinary Shares, P20 par, 100,000 shares authorized,75,000 shares issuedShare Premium-OrdinaryRetained EarningsP 500,00080,0001,500,000125,000505,000At the annual shareholders' meeting on Feb. 11, the board of directors presented a planfor modernizing and expanding plant operations at a cost of approximately P600,000.The plan provided (a) that the corporation borrow P175,000, (b) that 1,000 shares of theunissued preference shares be issued through an underwriter, and (c) that a buildingvalued at P280,000, and the land on which it is located, valued at P50,000, be acquiredin accordance with preliminary negotiations by the issuance of 15,000 ordinary shares.The plan was approved by the shareholders and accomplished by the followingtransactions:Issued 15,000 ordinary shares in exchange for land and a building,according to the plan.Mar. 3Issued 1,000 preference shares, receiving P105 per share in cashfrom the underwriter.15Borrowed P175,000 from Philippine National Bank, giving a 12%mortgage note.31No other transactions occurred during March.on Y19

Shareholder’s equity is the amount representing finance raised by the company through issuance of…

Answered: 1.Prepare memorandum entries to record…

1.Prepare memorandum entries to record the foregoing transactions. 2.Prepare the Shareholder’s equity section of the statement of financial position as at March 31,2018

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Explain (with reasons) how and where (including class/category where applicable) each of theevents/transactions described below would be treated, recognised and/or disclosed in thefinancial reports of Vurture Ltd for the year ended 30 June 2021.Note: You need to consider whether information about the event or transaction needs to bepresented separately. Journal entries and actual disclosure notes are NOT required.(a) On 5 July 2021, the government announced new regulations relating to the sale anduse of the flying exo-suits. Part of the new regulations require that from 1 September2021 exo-suits can only be sold to persons who have a 'Flying Exo-Suit Permit'. A personmust apply to the government for a permit and pay a fee of $400. The permit must beprovided before an exo-suit can be sold. Vulture sells two types of exo-suits: aneconomic exo-suit and an advanced exo-suit, and sales have been increasing forVulture Ltd over the last 3 years. There is expected to be a significant increase…
Subsequent events are reviewed through which date under IFRS?(a) Statement of financial position date.(b) Sixty days after the year-end date.(c) Date of independent auditor’s opinion.(d) Authorization date of the financial statements.
According to the new Conceptual Framework, who among the following are primary users of financial reports? I. Existing and/or potential creditors; II. Shareholders; III. General public a. I and II b. I and III c. II and III d. All of the above
For a publicly owned company, indicate which of the fol-lowing accounting activities are likely to occur at or shortly after year-end. (More than one answer may be correct.)a. Preparation of income tax returns.b. Adjusting and closing of the accounts.c. Drafting of disclosures that accompany the fi nancialstatements.d. An audit of the fi nancial statements by an independentCPA fi rm.
View previous attempt On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open market in exchange for $16,200. On December 31, 2020, Akron, Inc., acquires an additional 25 percent of Zip Company's outstanding common stock for $96,750. During the next two years, the following information is available for Zip Company: Common Stock Fair Value 2019 2020 2021 Income Dividends Declared $69,000 $7,100 89,000 14,700 (12/31) $324,000 387,000 477,000 Check my work At December 31, 2020, Zip reports a net book value of $289,000. Akron attributed any excess of its 30 percent share of Zip's fair over book value to its share of Zip's franchise agreements. The franchise agreements had a remaining life of 10 years at December 31, 2020, a. Assume Akron applies the equity method to its Investment in Zip account 1. What amount of equity income should Akron report for 2021? 2. On Akron's December 31, 2021, balance sheet, what amount is reported for the Investment in…
The ending retained earnings balance is reported on both the retained earnings statement and the balance sheet. T or F.
Event Balance 1/1/Year 2 Assets Cash Land 15,000 25,000 BETTER CORP. Accounting Equation Liabilities Notes Payable 12,500 + Better Corp, completed the following transactions during Year 2: 4. Paid cash operating expenses of $41,500. 5. Borrowed $15,000 cash from the bank. 1. Purchased land for $7,500 cash. 2. Acquired $30,000 cash from the issue of common stock. 3. Received $69,000 cash for providing services to customers. Stockholders' Equity Common Retained Stock Earnings 7,500 20,000 6. Paid a $7,500 cash dividend to the stockholders. 7. Determined that the market value of the land purchased in event 1 is $40,000. Accounting Titles for Retained Earnings Required a. Record the transactions in the accounting equation for Year 2. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide the appropriate titles for these accounts in the last column of the table. b. As of December 31, Year 2, determine the total amount of assets, liabilities, and…
t13
Under What headings will you show the following items in the Balance sheetof a company:1) Securities Premium account2) Preliminary Expenses3) Bills Receivable4) Goodwill5) Authorised share Capital
What group or organization is/was responsible for the issuance of Accounting Research Bulletins? Question 15 options: a) Securities and Exchange Commission b) Accounting Principles Board c) Finanical Accounting Standards Board d) Committee on Accounting Procedures
On March 1, 2020, what will the correct journal entry be? a) Dr. Cash Dividends: Cr. Dividends Distributable b) Dr. Cash: Cr. Common Shares & Preferred Shares c) Dr. Retained Earnings: Cr. Dividends Distributable d) Dr. Cash: Cr. Contributed Capital e) None of the above
Which of the following does not accurately describe a requirement that a company must fulfill when adopting IFRS for the first time? 14 Multiple Choice