During May 20x1, the entity issued 90,000 of its P10 par value ordinary shares for P1,080,000. Netincome through December 31, 20x1 was P102,500.On July 3, 20x2, the entity issued 150,000 of its ordinary shares for P1,950,000. A 5% share dividendwas declared on October 2, 20x2, and issued in November 6, 20x2, to shareholders of record on October23, 20x2. The market value if the ordinary shares was P11 per share on the declaration date. The entity'snet income for the year ended December 31 ,20x2 was P220,000.During 20x3, the entity had the following transactions:1. In February, reacquired 9,000 of its ordinary shares for P9 per share. The entity uses the cost methodto account for treasury shares.2. In June, the entity sold 4,500 of its treasury shares for P13 per share.3. In September, each shareholder was issued for each share held one (1) right to purchase two (2)additional ordinary shares for P13 per share. The rights expire on December 31, 20x3.4. In October, 75,000 rights issues were exercised when the market value of the ordinary share was P14per share.5. In November, 120,000 rights were exercised when the market value of the ordinary share was P15 pershare.6. On December 10, the entity declared its first cash dividend to shareholders of P0.25 per share,payable, on January 10, 20x4, to shareholders of record on December 31, 20x3.7. On December 22, in accordance with the applicable law, the entity formally retired 3,000 of its treasuryshares and had them revert to an unissued basis. The market value of the ordinary share was P16 pershare on this date.8. Net income for 20x3 was P270,000.Requirement: Compute for the following:1. Ordinary share capital balance on December 31, 20x32. Share premium – ordinary shares on December 31, 20x33. Retained earnings balance on December 31, 20x34. Treasury shares balance on December 31, 20x3

Retained earnings refers to that part of the accumulated net income of a corporation which is…

During May 20x1, the entity issued 90,000 of its P10 par value ordinary shares for income through December 31, 20x1 was P102,500. On July 3, 20x2, the entity issued 150,000 of its ordinary shares for P1,950,000. A was declared on October 2, 20x2, and issued in November 6, 20x2, to shareholde 23, 20x2. The market value if the ordinary shares was P11 per share on the decla net income for the year ended December 31 ,20x2 was P220,000. During 20x3, the entity had the following transactions: 1. In February, reacquired 9,000 of its ordinary shares for P9 per share. The entity to account for treasury shares. 2. In June, the entity sold 4,500 of its treasury shares for P13 per share.

During May 20x1, the entity issued 90,000 of its P10 par value ordinary shares for income through December 31, 20x1 was P102,500. On July 3, 20x2, the entity issued 150,000 of its ordinary shares for P1,950,000. A was declared on October 2, 20x2, and issued in November 6, 20x2, to shareholde 23, 20x2. The market value if the ordinary shares was P11 per share on the decla net income for the year ended December 31 ,20x2 was P220,000. During 20x3, the entity had the following transactions: 1. In February, reacquired 9,000 of its ordinary shares for P9 per share. The entity to account for treasury shares. 2. In June, the entity sold 4,500 of its treasury shares for P13 per share.

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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Part of the Financial Position of Candy Inc. as of Dec. 31, 2019 shows the following: Accounts Payable Bonds payable Ordinary Share Capital par) 8% Preference Share Capital (P200 par) 10% Preference Share Capital(P200 par) Р 56,000 500,000 550,000 (P100 300,000 200,000 25,000 50,000 70,000 230,000 (21,000) P 1,960,000 Share Premium – ordinary Share Premium – Preference Appropriations reserve Accumulated Profits Treasury shares - ordinary (P105/sh) Total Equities Dividends are in arrears for two years. The 10% preference share capital is cumulative while the 8% preference share capital is participating up to 12%. If Candy Inc. is liquidated, how much would be received by Mr. Gwapo who holds 500 ordinary shares and 100 shares of 10% preference shares?
The LL Company will issue shares of P10 par value common stock for all the assets and liabilities of the OO Company. LL Company’s common stock has a current market value of P40 per share. The OO Company’s net assets were as follows: Current Assets 1,280,000 Non-Current Assets 3,520,000 Liabilities 1,600,000 The fair market value of the current assets is P1,600,000 while that of the non-current assets is 6,400,000. All of the liabilities are correctly stated. LL Company issued sufficient shares of stock so that the fair market value of the stock is equal the fair market value of OO Company’s net assets. Referring to the previous item, To have a goodwill of P800,000, the number of shares to be issued by LL should be? 144,000 178,000160,000 180,000
Santol Inc. issued 200,000 shares of P5 par value at P10 per share. On January 1, 2021, the retained earnings amounted to P3,000,000. In March 2021, the entity reacquired 50,000 treasure shares at P20 per share. How much should Retained Earnings be appropriated?
On May 1, 2020, ABC Corporation, a newly formed company had the following share capital issued and outstanding:· Ordinary share capital, P10 par, 20,000 shares originally issued for P30 per share. · Preference share capital, P100 par, 600 shares originally issued for P 500 per share. 21. What is the amount of Ordinary share capital that ABC Corporation should report in its May 1, 2020 statement of shareholder’s equity? a. 60,000 b. 200,000 c. 400,000 d. 640,000 22. Based on Item 21, what is the amount of Preference share capital that ABC Corporation should report in its May 1, 2020 statement of shareholder’s equity? a. 60,000 b. 200,000 c. 400,000 d. 640,000 23. Based on Item 21, what is the amount of additional paid in capital that ABC Corporation should report in its May 1, 2020 statement of shareholder’s equity? a. 200,000 b. 240,000 c. 400,000 d. 640,000 24. Based on Item 21, what is the amount of contributed…
On February 2019, Sean Company began operations by issuing at P15 per share 50% of the 950,000 ordinary shares of P1 par value that had been authorized for issue. In addition, the entity had 500,000 authorized preference shares of P5 par value. During 2019, the entity had P1,025,000 of net income and declared P230,000 of dividend. During 2020, the entity had the following transactions: Issued 100,000 ordinary shares for P17 per share. Issued 150,000 preference shares for P8 per share. Authorized the purchase of a custom-made machine to be delivered in January 2-021. The entity restricted P300,000 of retained earnings for the purchase of the machine. Issued additional 50,000 preference shares for P9 per share. Reported P1,215,000 of net income and declared on December 31, 2020 a dividend of P635,000 to shareholders of record on January 15, 2021 to be paid on February 1, 2021. What account must be debited as a result of the declaration of dividends in 2019
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Assume that, on January 1, 2021, Matsui Co. paid $1,795,200 for its investment in 74,800 shares of Yankee Inc. Further, assume that Yankee has 220,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $440,000 at January 1, 2021. The following information pertains to Yankee during 2021: Net income Dividends declared and paid Market price of common stock on 12/31/2021 Multiple Choice $2,081,200. What amount would Matsui report in its year-end 2021 balance sheet for its investment in Yankee? $1,949,200. $220,000 66,000 $1,847,560. $ $ 26/share
The shareholders’ equity section of THANOS Company revealed the following information on December 31, 2021: Preference share, ₱100 par,₱2,300,000; share premium-preference, ₱805,000; ordinary share,₱15 par, ₱5,250,000; share premium-ordinary, ₱2,750,000; subscribed ordinary share,₱50,000; Accumulated profits and losses,₱1,900,000; and stock dividends payable-ordinary, ₱450,000. How much is legal capital? a. ₱ 5,750,000 b. ₱ 8,050,000 c. ₱ 8,000,000 d. ₱ 7,600,000
11. The following data of Slapshock Corporation as of December 31, 2019 showed the following: Preference share capital, P 100 par P 820,000; Ordinary share capital, P 30 par, 300,000 shares authorized, 100,000 shares issued and outstanding P3,000,000; Preference share premium P410,000; Ordinary share premium P3,300,000. What was the original issue price per share of preference share capital? Using data in no. 11, what was the original issue price per share of ordinary share capital? Using data in no. 11, how many shares of preference share capital were issued and outstanding as of December 31, 2019?