Iron King Corporation had the following transactions during 2019: Jan. 1. Issued 6,000 ordinary shares at par of P100 in exchange for real property with a market value of P800,000. The corporation is authorized to issue 20,000 shares. Jan 15. Sold 8,000 shares at P120Mar. 10. Purchased 800 of its shares at P150. June 12. Sold 400 treasury shares.Dec. 31 Profit for the year is P316,000. 1. Compute for the total ordinary share capital as of December 31, 2019. 2. Compute for the retained earnings as of December 31, 2019.

The amount received in excess of par value on issuance of ordinary shares is recorded as additional…

Answered: Iron King Corporation had the following…

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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Iron King Corporation had the following transactions during 2019:

Jan. 1. Issued 6,000 ordinary shares at par of P100 in exchange for real property with a market value of P800,000. The corporation is authorized to issue 20,000 shares.
Jan 15. Sold 8,000 shares at P120
Mar. 10. Purchased 800 of its shares at P150.
June 12. Sold 400 treasury shares.
Dec. 31 Profit for the year is P316,000.

1. Compute for the total ordinary share capital as of December 31, 2019.

2. Compute for the retained earnings as of December 31, 2019.

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