Harold Corporation declared share dividends of 1 share for every 5 shares owned on its 300,000 issued and outstanding ordinary shares with a par value of P50 per share. At the time of declaration the fair value of the ordinary shares was P65 per share and P80 per share at the time the shares were issued. What amount should be charged to the Retained Earnings account upon date of declaration?

Harold Corporation declared share dividends of 1 share for every 5 shares owned on its 300,000 issued and outstanding ordinary shares with a par value of P50 per share. At the time of declaration the fair value of the ordinary shares was P65 per share and P80 per share at the time the shares were issued. What amount should be charged to the Retained Earnings account upon date of declaration?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

APPLE Company was organized at the beginning of the current year and was authorized to issue sharecapital of 200,000 ordinary shares with par value of ₱20. The following transactions occurred duringthe year:• Received subscriptions at par value from incorporators equal to 45% of the authorized sharecapital• Received 60% down payment on the subscriptions from the incorporators• Received full payment on 50,000 shares originally subscribed• An equipment was acquired by issuing 5,000 shares. Share are currently traded at this timeat ₱25/share.• Received subscriptions to 10,000 shares at ₱28/share• Partially collected 50% of the amount subscribed on the latest subscriptions.• Collected in full 90% of the latest subscription. 10% defaulted, thus the corporation offered theshares on a public auction and awarded it to the highest bidder who paid the delinquencybalance and the incurred ₱5,000 auction expense.• Net income for the year-ended was ₱800,000. 1. How much did the highest bidder…
Fiona Company issued 21,500 ordinary shares with par value of P85 in exchange for land with a fair market value of 920,000 and a building with fair market value of P1,087,500. What is the amount to be debited for Share Premium-Ordinary?
1. At the current year end, Spurs Corporation declared 4,000 ordinary shares of P 100 par value in connection with a share capital dividend. The market value per share on the date of declaration was P 150. The shareholder’s equity accounts immediately before issuance of the share capital dividend shares were as follows: Ordinary share capital, P 100 par,50,000 shares authorized, 20,000 shares outstanding - P 2,000,000 Ordinary Share premium -P3,000,000 Retained earnings -P 1,500,000What amount should be reported as retained earnings immediately after the share capital dividend?a. P2,100,000b. P900,000c. P1,100,000d. P1,500,000
What is the balance of the share capital as of year-end?
On January 01, 2021, EFG Company had 100,000 P50 par value ordinary shares outstanding. In addition, on January 01, 2021, the entity had issued 15,000 convertible cumulative 10% preference shares with P100 par value. These preference shares were converted on August 01, 2021. Each preference share was converted into 4 ordinary shares. The preference dividends for the entire year were paid in full before conversion. The entity had no other potentially dilutive securities. Net income for the year was P6,400,000. Diluted EPS a. 51.20b. 39.06c. 40d. 50e. 62.50
On 5 March 20X7, Marchant Ltd issued 200,000 5% irredeemable GHS 1 preference shares. In accordance with IAS 32 Financial Instruments: Presentation, how will these shares and their related dividend be shown in Marchant Ltd’s financial statements for the year ended 31 March 20X7?
When incorporated Y Ltd. Issued 2,000 common shares to A for dollar 2,000. In year 2, Y Ltd. issued 1,600 additional common shares to B for dollar 16,000, the market value of the shares at that date. What is the total paid up capital of the common shares owned by A?
BCA Company issued 1,000 shares with P 5 par to Atty Bryant as compensation for 1,000 hours of legal services performed Atty Bryant usually bills P 160 per hour for legal services. On the date of issuance, the share had a fair value of P 140. By amount would the share premium account increase as a result of the transaction?*
A corporation issued shares with par value of P 200.00, subsequently, the corporation purchased the share at par value. If the shares are sold by the corporation for P 150.00 per share, N subscribed for 100 shares of the corporation and paid the 70 shares. 2.2 What will be the document to be used, is it a subscription contract or pre-incorporation contract. Explain.