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Dina Fritz Corporation provided the following information on Shareholders Equity on December 31, 2020: Ordinary share capital (500, 000 of P5 par authorized, 300,000 shares issued and outstanding) Share premium-ordinary shares Preference share capital (100,000 shares authorized, 50,000 issued P10 par) 1,500,000 2,500,000 1,000,000

Dina Fritz Corporation provided the following information on Shareholders Equity on December 31, 2020: Ordinary share capital (500, 000 of P5 par authorized, 300,000 shares issued and outstanding) Share premium-ordinary shares Preference share capital (100,000 shares authorized, 50,000 issued P10 par) 1,500,000 2,500,000 1,000,000

FINANCIAL ACCOUNTING
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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Prepare journal entries.

Illustrative Problem Dina Fritz Corporation provided the following information on Shareholders Equity on December 31, 2020: Ordinary share capital (500, 000 of P5 par authorized, 300, 000 shares issued and outstanding) 1, 500, 000 2, 500, 000 Share premium – ordinary shares Preference share capital (100, 000 shares authorized, 50, 000 issued P10 par) 1, 000, 000 Share premium – preference shares Retained Earnings Total Shareholder's Equity 1, 500, 000 3, 000, 000 9, 500, 000 Dina Fritz had the following transactions during 2021: a. Issued 50, 000 ordinary shares for P15 and 20, 000 preference shares for an equipment costing 400, 000 and can be sold at the market for 350, 000. b. Issued 50, 000 ordinary shares and 5, 000 preference shares for services rendered by outside lawyers valued 700, 000. The ordinary and preference shares are selling in the market at 8 and 20 respectively. c. Issued 25, 000 ordinary shares for P10. Incurred the following costs for the issue: Legal fees 15, 000 3, 000 Underwriting Fees Filing Fees with SEC Transfer agent fees 2, 000 5, 000 d. Received 20, 000 ordinary shares subscription at P10. Later on, only half of the subscriptions were paid. The unpaid subscriptions were offered at public auction for 117, 500 which includes interest of 10, 000 and advances on delinquency sale of 7, 500. Received the following offers: A 10, 000 B 9, 000 8, 000 e. Reacquired 50, 000 ordinary shares for P11. The shares were originally issued at P12.50. On a later date, half of the shares were reissued for 375, 000. The remaining shares were retired. f. Received donations 10, 000 of its own shares which were selling at that date at P20. The shares were then reissued for P10.
Transcribed Image Text:Illustrative Problem Dina Fritz Corporation provided the following information on Shareholders Equity on December 31, 2020: Ordinary share capital (500, 000 of P5 par authorized, 300, 000 shares issued and outstanding) 1, 500, 000 2, 500, 000 Share premium – ordinary shares Preference share capital (100, 000 shares authorized, 50, 000 issued P10 par) 1, 000, 000 Share premium – preference shares Retained Earnings Total Shareholder's Equity 1, 500, 000 3, 000, 000 9, 500, 000 Dina Fritz had the following transactions during 2021: a. Issued 50, 000 ordinary shares for P15 and 20, 000 preference shares for an equipment costing 400, 000 and can be sold at the market for 350, 000. b. Issued 50, 000 ordinary shares and 5, 000 preference shares for services rendered by outside lawyers valued 700, 000. The ordinary and preference shares are selling in the market at 8 and 20 respectively. c. Issued 25, 000 ordinary shares for P10. Incurred the following costs for the issue: Legal fees 15, 000 3, 000 Underwriting Fees Filing Fees with SEC Transfer agent fees 2, 000 5, 000 d. Received 20, 000 ordinary shares subscription at P10. Later on, only half of the subscriptions were paid. The unpaid subscriptions were offered at public auction for 117, 500 which includes interest of 10, 000 and advances on delinquency sale of 7, 500. Received the following offers: A 10, 000 B 9, 000 8, 000 e. Reacquired 50, 000 ordinary shares for P11. The shares were originally issued at P12.50. On a later date, half of the shares were reissued for 375, 000. The remaining shares were retired. f. Received donations 10, 000 of its own shares which were selling at that date at P20. The shares were then reissued for P10.
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