Donations of Assets and Shares Marasigan Corp. received the following items as donations during 2018: Arias Realty gave the corporation 5 hectares of land valued at P6,000,000. Marasigan agreed to build a distribution warehouse on the property and to employ at least 50 local residents. Mar. 21 A shareholder donated 10,000 shares of Marasigan P200 par ordinary shares. The stock was selling for P425 per share on Apr. 30. Apr. 30 Bobadilla Holdings donated a mobile office, which was moved to the donated land and used as a temporary office. An independent appraisal established the value of the mobile office at P675,000. June 25 July 15 4,000 of the ordinary shares received as a donation on Apr. 30 were sold for P1,820,000.

Donations of Assets and Shares Marasigan Corp. received the following items as donations during 2018: Arias Realty gave the corporation 5 hectares of land valued at P6,000,000. Marasigan agreed to build a distribution warehouse on the property and to employ at least 50 local residents. Mar. 21 A shareholder donated 10,000 shares of Marasigan P200 par ordinary shares. The stock was selling for P425 per share on Apr. 30. Apr. 30 Bobadilla Holdings donated a mobile office, which was moved to the donated land and used as a temporary office. An independent appraisal established the value of the mobile office at P675,000. June 25 July 15 4,000 of the ordinary shares received as a donation on Apr. 30 were sold for P1,820,000.

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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Question

Donations of Assets and Shares
Marasigan Corp. received the following items as donations during 2018:
Mar. 21
Arias Realty gave the corporation 5 hectares of land valued at
P6,000,000. Marasigan agreed to build a distribution warehouse on the
property and to employ at least 50 local residents.
Apr. 30
A shareholder donated 10,000 shares of Marasigan P200 par ordinary
shares. The stock was selling for P425 per share on Apr. 30.
Bobadilla Holdings donated a mobile office, which was moved to the
donated land and used as a temporary office. An independent appraisal
established the value of the mobile office at P675,000.
June 25
July 15
4,000 of the ordinary shares received as a donation on Apr. 30 were sold
for P1,820,000.
Required:
1. Prepare journal entries to record the transactions related to the donations.
2. Compute the amount of donated capital that Marasigan Corporation would present on
Dec. 31, 2018 statement of financial position.

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