Exercise 10-5 (Share Split and Reverse Share Split; Recapitalization)On June 30, 2014, the capital accounts of Japorms Company are as follows:Ordinary Share Capital, P20 par, 50,000 sharesOrdinary Share PremiumP1,000,000200,000 Instructions:Prepare the necessary journal entry to record each of the following independenttransactions:1.The company undertakes a 5 for 1 share split.The company undertakes a 1 for 4 share split.One new ordinary share with a par value of P15 is issued in exchange forone ordinary share with a par value of P25.One new ordinary share with a stated value of P25 is issued in exchangefor one ordinary share with a par value of P25.a.b.C.d.2.State the number of capital shares issued and outstanding for each independenttransaction.

Ordinary shares are one of the kinds of shares that are being issued by an entity so as to finance…

Exercise 10-5 (Share Split and Reverse Share Split; Recapitalization) On June 30, 2014, the capital accounts of Japorms Company are as follows: Ordinary Share Capital, P20 par, 50,000 shares Ordinary Share Premium P1,000,000 200,000

Exercise 10-5 (Share Split and Reverse Share Split; Recapitalization) On June 30, 2014, the capital accounts of Japorms Company are as follows: Ordinary Share Capital, P20 par, 50,000 shares Ordinary Share Premium P1,000,000 200,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: ABC Co. 's shareholders' equity on December 31,2020 are as follows: 7% preference shares P100 par…

A: Book value per share is determined by dividing the net assets of the entity by total ordinary shares…

Q: Below is a partial list of account titles and balances for the TNT Corporation as of December 31,…

A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…

Q: The following information was lifted from the shareholders' equity section of Neeoma Corporation's…

A: Cash dividend payable represents the amount of dividends that a company owes to its shareholders but…

Q: 17. Silver Company reported the following capital structure on January 1, 2015: Ordinary share…

Q: Given below are the statements of financial position of H and its subsidiary of S as at 31st…

A: Consolidation is the process of merging the accounts of a subsidiary with the parent entity.…

Q: Monenco SAOG has 500,000 OMR 1 common shares as on 31 July 2018.The company makes a right issue by…

Q: The equity section from the December 31, 2020 balance sheet of Kentucky Corporation appeared as…

A: The dividend is payable to shareholders only for the shares which are outstanding. Treasury stock…

Q: Instructions: Compute for each of the items enumerated below. Number of preference shares issued for…

A: Honor Code: Since you have posted a question with multiple sub-parts, we will solve the first 3…

Q: #21 The ABC Company began operations in January 2018 and reported the following results for each of…

A: Issue of shares is one of the important source of finance being used in business. These can be…

Q: Which one of the following amounts will be the total dividend expense on 31 December 2020?

Q: On 1 Januay 20X3 Bana plc had a balance on its share premium account of $118,000, and total issued…

A: Share premium: It implies to the amount that is received in excess of the par value of the shares on…

Q: The Dirge Corporation was organized on January 1, 2013 with authorized share capital consisting…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: a. Prepare a journal entry or entries in Pal Corporation's books to record the stock acquisition. b.…

A: Journal entry : Net Asset Acquired 51,57,000.00 - Goodwill…

Q: 12 A company issued 90,000 shares of €5 par value ordinary shares for €11 per share The joumal entry…

A: Total cash received = No. of shares issued x Issue price = 90000 share x 11 per share = 990000

Q: Current Attempt in Progress On October 31, the equity section of Oriole AG consists of share…

A: A summary of effects of alternative actions on the components of stockholders’ equity is a report…

Q: View Policies Current Attempt in Progress On January 1, Blossom Enterprises had 90,000 no-par…

A: The company can raise funds by various methods. Some of them are, by way of issuing common stock,…

Q: help

A: No. of shares issued under stock dividend = no. of shares outstanding x stock dividend rate =…

Q: Information concerning the capital structure of Crane Corporation is as follows: Common stock…

A: Diluted earnings per share( Diluted EPS) is a fiscal standard that calculates the earnings…

Q: ILLUSTRATION 8. Following figures appeared in the Balance Sheet of Pure Products Ltd. as on…

Q: How much is the total dividends payable to ordinary shareholders? 2. What is the balance of the…

A: Dividends represent a distribution of a company's profits to its shareholders as a reward for their…

Q: Current Attempt in Progress Sandhill SA's ledger shows the following balances on December 31, 2022.…

A: Case a) Preference shares are cumulative & fully participatingCumulative preference shares are…

Q: е Сapit 11 are Pre е Prem

A: NNN company on Dec 31,2014: Calculation of Book value of per preference Share: Book value per…

Q: 5. On January 1, 2021, MNO Company acquired 12,500 of the outstanding common shares of Esther…

A: The question is related Business Combination. The details are as under Stake of MNO Comapny in…

Q: Splish Brothers Limited is a private company that follows ASPE. It is authorized to issue an…

A: Return on Equity (ROE) is a financial ratio that measures the profitability of a company in relation…

Q: An entity provided the following data for the current year: Net Income – P 4,000,000 Ordinary…

A: Calculating Diluted EPS 48000 stock options would increase the number of outstanding shares by…

Q: Equity and Liabilities Share capital-common (131,000 shares issued) Retained earnings (Note 1)…

A: The question is related to Ratio Analysis. The Return on equity is calculated with the help of…

Q: Using the information in AA8, how much is the total amount of Retained Earnings? P 150,000 P 100,000…

A: Retained earnings means the amount that is left after paying all the expenses and amount that…

Q: BFAR Corporation has the following information in order: • Authorized Ordinary share capital of…

A: The total ordinary share is calculated with the help of following formula Total ordinary shares =…

Q: Robotics Ltd issued share capital has not changed since incorporation on 1 January 2018 and consist…

A: Calculation of Total Amount of Dividend : Dividend paid to Ordinary shareholders =…

Q: ABC Cor. reported P3,000,000 of ordinary share capital and P4,500,000 of additional paid-in capital…

A: Book value per share = Value of share capital excluding additional paid in capital / Number of…

Q: 25 An entity provided the following data for the current year: Net Income – P 4,000,000 Ordinary…

A: In the context of the given question, we are required to compute the basic earnings per share for…

Q: Contributed Capital: Authorized Share Capital, 20,000 shares at P100 par value per share Less:…

A: Authorized capital is also known as nominal capital or registered capital. It is the maximum amount…

Q: Problem 8-6 (Reconstruction of Shown below and on the next page are account balances found in the…

A: One of the source used by the business organizations to raise the capital are issue of shares i.e.…

Q: Accounting for share investments Check Figure 2: Carrying value per share, $19.63 River Outdoor…

A: Stock investment It is a process under which shares are bought in a public company. Those shares are…

Q: Problem 3 National Supply's shareholders' equity included the following accounts at December 31,…

A: Retired shares can't be reissued because they wil not have any value after retirement. Please…

Q: follows: Bonds payable, 10 years, 10% P1,000,000 10%…

Q: After the combination, what is the total shareholders' equity of Parent Company? * The shareholders'…

A: Shareholder's Equity: Shareholders' equity (also known as corporate net worth) is a measure of how…

Q: You are required to prepare the journal entries to record the above transactions.

A: Preference Shares are the shares which carry preferential rights over the Equity shareholders in…

Q: nd show your soluti

A: shareholders' equity of NNN Company on December 31, 2014 follows: calculation of Book value of per…

Q: Required: 1. How much is the total accumulated profits, appropriated? 2. What is the total…

A: Financial accounting is a branch concerned with recording, summarising, and reporting financial…

Q: FAR5 - Chapter 7: Consolidated Statement of Financial Position Question 1 Dayang Berhad acquired…

A: Consolidation refers to the process of merger or acquisition where one company acquires another…

Q: An analysis of equity of EFG Corporation as of January 1, 2015, is as follows: Share…

A: Total sales value of treasury stock = No. of shares x issue price = 2000 shares x P35 per share +…

Q: Question 2 The equity accounts of Marvell Ltd. on January 1, 2020, were as follows. Share…

Q: An entity provided the following data for the current year: Net Income – P 4,000,000 Ordinary…

A: Basic EPS = net income/ No. of Shares Outstanding = 4000000/250000 = P 16

Question

Exercise 10-5 (Share Split and Reverse Share Split; Recapitalization)
On June 30, 2014, the capital accounts of Japorms Company are as follows:
Ordinary Share Capital, P20 par, 50,000 shares
Ordinary Share Premium
P1,000,000
200,000

Instructions:
Prepare the necessary journal entry to record each of the following independent
transactions:
1.
The company undertakes a 5 for 1 share split.
The company undertakes a 1 for 4 share split.
One new ordinary share with a par value of P15 is issued in exchange for
one ordinary share with a par value of P25.
One new ordinary share with a stated value of P25 is issued in exchange
for one ordinary share with a par value of P25.
a.
b.
C.
d.
2.
State the number of capital shares issued and outstanding for each independent
transaction.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

GOOD ACCOUNTING FORM
18. The capital account of Gene, Inc. on December 31, 2014 were as follows: Preference share capital, 20,000 share, P20 par 400,000 Share premium – preference 160,000 Ordinary share capital, 50,000 shares, P80 par 4,000,000 Share premium – ordinary 600,000 Retained earnings 360,000 During the year ending December 31, 2015, the following summarizes the transactions affecting the shareholders’ equity. April 30 1,000 preference shares were retired at P25 per share. June 15 2,000 treasury shares, ordinary, were purchased at P85 per share. June 30 A two-for-one ordinary share split was declared. July 31 800 treasury shares were reissued P50 per share. December 31 Profit for 2015 was P300,000. What was the total share premium on December 31, 2015? Group of answer choices A. 766,000 B. 761,000 C. 760,000 D. 755,000
Ace Company stockholder’s equity at the end of 2015 is shown in the table below. Preference share capital, €10 par value €500,000 Share premium – Preference €280,000 Ordinary share capital, €25 stated value €1,500,000 Share premium - Ordinary €900,000 Treasury Shares (10,000 ordinary shares) €150,000 Retained earnings €1,235,000 Determine how many shares of ordinary shares are outstanding? and b) determine how much must be the total shareholder’s equity?
10
Problem 4 (Adapted)The shareholders equity of Joyce corporation on Dec. 31, 2018 shows the following account balances:10% preference share, 10,000 shares, 100 par 1,000,00012% preference share, 12,000 shares, 100 par 1,200,000Ordinary share, 20,000 shares, 40 par 800,000 Share premium 640,000Accumulated profits 960,000The 10% preference share is cumulative and fully participating, while the 12% preference share is non-cumulative and fully participating. The last payment of dividends was on Dec. 31, 2016. What is the book value per share of ordinary shares?
Problem 6: Treasury Shares year 20x1: Valientes Corporation reported the shareholders. Equity at the beginning of the Ordinary share, P10 par, outstanding 225,000 shares Share Premium Retained Earnings 2,250,000 1,500,000 2,000,000 During the year, the entity had the following treasury shares transactions: Acquired 10,000 treasury shares for P500,000. Sold 5,000 treasury shares at P60 per share - Sold 2,000 treasury shares at P45 per share. Required: a. Prepare the journal entries b. Prepare the shareholders' equity at the end of the year
i.3
A-7
QUESTION 2Naruto Bakery has a capital structure consisting of:42,000 issued and paid-up ordinary shares RM105,0005,000 issued and paid-up 10% Preference shares RM15,0008% Bonds (10-year maturity) RM30,000The balance of retained earning as at 1 January 2021 was RM75,000. The market priceper unit of the company’s financial instruments are as follows:Ordinary shares : RM2.50 (last dividend paid was RM0.50; growth rate is 5%Preference shares : RM3.008% Bonds : RM890.00 (par value RM1,000)The company is considering to invest in new project worth RM80,000. The floatationcost to sell more shares and bonds are 5%. The corporate tax rate 25%.You are required to calculate (show all workings):b. The company’s cost of debt, preference share, retained earnings and newissuance of ordinary shares.
15. Rock Company reported the following shareholders equity on December 31, 2022: Share capital, P50 par value 3,000,000 Share premium 600,000 Retained earnings 4,200,000 A 15% share dividend was declared and distributed on December 31, 2022 when entity’s share was selling at P65. What amount should be reported as share capital outstanding? Group of answer choices 3,450,000 3,585,000 3,615,000 4,185,000
QUESTION TWO B plc has the following capital structure: K’000Ordinary shares – K0.40 5,000 Retained earnings 500 10% Preference shares at K1 1,500 10% K100 redeemable debentures 3,000 Total funds employed 10,000 The market price of the preference shares is 80n ex-div, the ordinary shares are quoted at K1.62 cum-div per share. Debenture stock is quoted at K97.5 ex-interest per K100 nominal and will be redeemable at par in exactly 7 years’ time. B plc has just declared dividend of K1,500,000 in total for all issued ordinary shares. The dividend growth rate is 4% per year forever. Company tax is 30% per year. The market rate of return is 12% and the company has an equity beta value of 1.25 Required:a) Calculate WACC based on market values. b) Discuss the implications of using a wrong WACC value in project appraisal and comment on the current level of capital gearing.
Problem 6 (Adapted)Anna company presented the following account balances in the shareholders’ equity section for the year ended December 31, 2018: Preference share capital, 12% P50 par, P3,000,000, Ordinary share capital, P100 par, P6,000,000 and deficit, (P1,350,000). No dividends have been paid on the preference share since 2016. Determine the book value per share under the following conditions:a. Preference share is preferred as to assetsb. Preference share is preferred as to dividend