SHOW THE JOURNAL ENTRY OF E AND F!SHOW THE JOURNAL ENTRY OF E AND F!SHOW THE JOURNAL ENTRY OF E AND F! PROBLEM 1: You were assigned to audit the shareholders' equity of Glory Inc. for the year endedDecember31, 2019. Glory Corp. was incorporated in early 2018 when it was authorized by SEC to issue500,000 ordinary shares (P10 par) and 100,000 convertible preference shares (P20 par). The followingschedule reflects the company's capital balances as of December 31, 2018:Ordinary shares, 100,000 shares issued during the company'sincorporation in exchange of a land with a fair value of P1.4 M.Preference shares, 50,000 shares issued during the company'sincorporation at PS0 per share. Each preference share is convertibleto four ordinary sharesRetained earnings, which is the company's net income in 2018Total shareholders' equityP1,400,0002,500,000540,000P 3,440.000.Your inquiries and investigation revealed the following transactions, which occurred in 2019:a. On January 15, the company reacquired 20, 000 ordinary shares (from the 2018 issue) at P22 pershare and reverted them to treasury since it intends to reissue the same.b. On February 11, the company reissued 4,000 treasury shares at P28 per share.c. On March 5, the company reissued 6,000 treasury shares at P19 per share.d. On April 1, the company retired 5,000 treasury shares.e. On May 12, 20,000 preference shares were converted to ordinary shares.f. On June 9, 15,000 shares were subscribed for a total amount of P175,0008. On July 4, a 2 for 1 share split was affected for the ordinary share.h. On August 8, the company reissued 3,000 treasury shares at P8 per share.. The company issued 4,000 ordinary shares for P11 per share.j. The company registered an adjustments net income in 2019 at P830,000.

Convertible is the option to convert the preferred stock to common stock at pre-agreed ratio

e. On May 12, 20,000 preference shares were converted to ordinary shares. f. On June 9, 15,000 shares were subscribed for a total amount of P175,000 R. On July 4, a 2 for 1 share split was affected for the ordinary share.

e. On May 12, 20,000 preference shares were converted to ordinary shares. f. On June 9, 15,000 shares were subscribed for a total amount of P175,000 R. On July 4, a 2 for 1 share split was affected for the ordinary 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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