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Exercise 10-3 (Reacquisition of Shares through Donation) In 2014, the Jolo Company issued 150,000 shares of its P10 par ordinary share capital at P25. In 2015, a major stockholder donated 5,000 shares when the market value of the share capital is P40 per share. Subsequently, all the donated shares were sold at P50 per share. Instructions: 1. 2. Prepare entries to record the receipt of the donated shares and their subsequent sale using the two alternative methods of recording. State the number of capital shares issued and outstanding after the donation and after the sale of the donated shares.

Exercise 10-3 (Reacquisition of Shares through Donation) In 2014, the Jolo Company issued 150,000 shares of its P10 par ordinary share capital at P25. In 2015, a major stockholder donated 5,000 shares when the market value of the share capital is P40 per share. Subsequently, all the donated shares were sold at P50 per share. Instructions: 1. 2. Prepare entries to record the receipt of the donated shares and their subsequent sale using the two alternative methods of recording. State the number of capital shares issued and outstanding after the donation and after the sale of the donated shares.

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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Exercise 10-3 (Reacquisition of Shares through Donation) In 2014, the Jolo Company issued 150,000 shares of its P10 par ordinary share capital at P25. In 2015, a major stockholder donated 5,000 shares when the market value of the share capital is P40 per share. Subsequently, all the donated shares were sold at P50 per share. Instructions: 1. 2. Prepare entries to record the receipt of the donated shares and their subsequent sale using the two alternative methods of recording. State the number of capital shares issued and outstanding after the donation and after the sale of the donated shares.
Transcribed Image Text:Exercise 10-3 (Reacquisition of Shares through Donation) In 2014, the Jolo Company issued 150,000 shares of its P10 par ordinary share capital at P25. In 2015, a major stockholder donated 5,000 shares when the market value of the share capital is P40 per share. Subsequently, all the donated shares were sold at P50 per share. Instructions: 1. 2. Prepare entries to record the receipt of the donated shares and their subsequent sale using the two alternative methods of recording. State the number of capital shares issued and outstanding after the donation and after the sale of the donated shares.
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