an authorized share capital of P10,000,000 consisting of 100,000On January 1, 2020, Multinational Company was organized withshares of P100 par value, one half of which was immediatelyIn February, the entity acquired a tract of resource land-at aAlso, the entity purchaşed for cash mining equiment ofDuring the year ended December 31, 2020, the entity minedshares of P100 par value, one half of which wassold for cash at P110 per share.immediatelyIn February, the entity acquired a tract of resource landcost of P3,000,000 which was paid in cash.Also, the entity purchased for cash miningP800,000.eqmentofThe geological survey of the resource property indicatedestimated content of 1,000,000 units.an6.90,000 units, of which 85;000 units were sold for a cash priceP50 per unit.The entity paid the following during the year:Mining labor ånd other direct costsAdministrative expenses2,268,000500,000Required:Prepare journal entries including adjustments to record thetransactions.а.b. Prepare an income statement for the year ended December31, 2020.c. Prepare a statement of financial position on December 31,2020.d. Compute the maximum dividend that can legally be declaredby the entity on December 31, 2020.e. Prepare journal entry assuming the maximum dividend 18declared by the 'entity.

Security that symbolizes ownership in a firm seems to be common stock. Common stockholders elect a…

In February, the entity acquired a tract of resource land-at a an authorized share capital of P10,000,000 consisting of 100,000 On January 1, 2020, Multinational Company was órganized with shares of P100 par value, one halt of which was immedio sold for cash at P110 per share. a cost of P3,000,000' which was paid in cash.

In February, the entity acquired a tract of resource land-at a an authorized share capital of P10,000,000 consisting of 100,000 On January 1, 2020, Multinational Company was órganized with shares of P100 par value, one halt of which was immedio sold for cash at P110 per share. a cost of P3,000,000' which was paid in cash.

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

100%

an authorized share capital of P10,000,000 consisting of 100,000
On January 1, 2020, Multinational Company was organized with
shares of P100 par value, one half of which was immediately
In February, the entity acquired a tract of resource land-at a
Also, the entity purchaşed for cash mining equiment of
During the year ended December 31, 2020, the entity mined
shares of P100 par value, one half of which was
sold for cash at P110 per share.
immediately
In February, the entity acquired a tract of resource land
cost of P3,000,000 which was paid in cash.
Also, the entity purchased for cash mining
P800,000.
eqment
of
The geological survey of the resource property indicated
estimated content of 1,000,000 units.
an
6.
90,000 units, of which 85;000 units were sold for a cash price
P50 per unit.
The entity paid the following during the year:
Mining labor ånd other direct costs
Administrative expenses
2,268,000
500,000
Required:
Prepare journal entries including adjustments to record the
transactions.
а.
b. Prepare an income statement for the year ended December
31, 2020.
c. Prepare a statement of financial position on December 31,
2020.
d. Compute the maximum dividend that can legally be declared
by the entity on December 31, 2020.
e. Prepare journal entry assuming the maximum dividend 18
declared by the 'entity.

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