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

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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.

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