Honda Company provided the following data during the first year of operations:Sold 30,000 preference shares, 12%, P100 par, at P140.Sold 100,000 ordinary shares of P50 par at P55.Purchased and retired 10,000 preference shares at P120.Purchased 15,000 ordinary shares at P52 to be held as treasury.Sold 10,000 treausry ordinary shares at P60.Shareholders donated to the entity 20,000 ordinary shares when shares had a market price of P60. One half of these shares were sold for P65.Net income for the year was P3,000,000Appropriated retained earnings equal to the remaining cost of treasury shares.Required: Prepare journal entries to record the transactions.Present the shareholder's equity.

When an event occurs in the business and it can be measured and expressed in terms of money, it…

Answered: Honda Company provided the following…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Honda Company provided the following data during the first year of operations:

Sold 30,000 preference shares, 12%, P100 par, at P140.
Sold 100,000 ordinary shares of P50 par at P55.
Purchased and retired 10,000 preference shares at P120.
Purchased 15,000 ordinary shares at P52 to be held as treasury.
Sold 10,000 treausry ordinary shares at P60.
Shareholders donated to the entity 20,000 ordinary shares when shares had a market price of P60. One half of these shares were sold for P65.
Net income for the year was P3,000,000
Appropriated retained earnings equal to the remaining cost of treasury shares.

Required: