Madraza Corporation was incorporated on July 1, 20A with authorized ordinary share capitaof P1,000,000 and preference share of P2,000,000 with par value of P100 each. During theyear, the corporation had the following transactions affecting the Shareholders' Equity:1st: 120 ordinary shares were issued for cash at par value.2nd:380 ordinary shares were issued in exchange for land. The fair market valueof land is P50,000.3rd: 200 ordinary shares were issued in payment of legal expenses incurred duringthe incorporation process, P25,000.Q-8 How much is the balance of Ordinary Share Capital account?a) P60,000b) P70,000c) PS0,000d) none of theseQ-9 What amount of Share Premium should be reported in the Statement of FinancialPosition?a) P17,000b) P19,000c)d)P21,000none of these

Ordinary share capital refers to the portion of a company's equity that is raised by issuing…

Answered: Madraza Corporation was incorporated on…

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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Spartan Corporation redeemed 25 percent of its shares for $4,500 on July 1 of this year, in a transaction that qualified as an exchange under $302(a). Spartan reported accumulated E&P at the beginning of the year of $4,500 and current E&P at year end was $12,300. Spartan made dividend distributions of $3,600 on June 1 and $6,600 on August 31. Determine the beginning balance in Spartan's accumulated E&P at the beginning of the next year. See Revenue Rule 74-338 and Revenue Rule 74 - 339 for help in making this calculation.
During its first year of operations, LEBANON COMPANY entered into the following transactions relating to shareholders' equity. Lebanon's articles of incorporation authorized the issue of 2,400,000 ordinary shares, P10 par per share, and 300,000 preference shares, P50 par per share. Mar. 14 Sold 500,000 ordinary shares for P100 per share. 15 Issued 20,000 ordinary shares to attorneys in exchange for legal services. 15 Sold 35,000 of its ordinary shares and 10,000 preference shares for P6,000,000. Nov. 20 Issued 1,900 of its ordinary shares in exchange for equipment for which the cash price was known to be P185,000. Based on the preceding information, determine the correct balance of each of the following accounts. 1. Ordinary share capital a. P5,569,000 b. Р5,219,000 c. P5,550,000 d. P6,069,000 2. Share premium - ordinary shares a. P46,800,000 b. P49,950,000 c. P52,116,000 d. P50,116,000 3. Preference share capital a. P2,000,000 с. Р500,000 b. РО d. P2,500,000 4. Share premium -…
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King Corporation began operations in January, year 1. The charter authorized the following share capital: Preferred shares: 7 percent, $25 par value, authorized 49,000 shares. Common shares: no par value, authorized 179,500 shares. During year 1, the following transactions occurred in the order given: a. Sold and issued 24,500 common shares to each of the three organizers. Collected $10 cash per share from two of the organizers, and received a plot of land with a small building on it in full payment for the shares of the third organizer and issued the shares immediately. Assume that 35 percent of the non-cash payment received applies to the building. b. Sold and issued 6,900 preferred shares at $25 per share. Collected the cash and issued the shares immediately. c. Sold and issued 2,900 preferred shares at $25 and 2,900 common shares at $13 per share. Collected the cash and issued the shares immediately. d. The operating results at the end of year 11 were as follows: Revenues Expenses,…
An entity was organized at the beginning of current year with 100,000 authorized shares of P100 par value. During the current year, the following transactions occurred:January 1 Sold 30,000 shares at P150 per shareFebruary 1 Issued 2,000 shares for legal services with fair value of P250,000. The shares on this date are quoted at P140 per share.March 1 Purchased 5,000 treasury shares at a cost of P120 per share.October 1 Issued P5,000,000 convertible bonds at 120. The bonds are quoted at 98 without the conversion feature.November 15 Declared a 2 for 1 share split when the market value of the share was P160.December 15 Sold 20,000 shares at P75 per share.December 31 The net income for the year was P2,000,0000. 1. Prepare the journal entries.2. Prepare the lead schedule 3. Prepare the stockholders equity section
The charter of a corporation provides for the issuance of 105,000 shares of common stock. Assume that 63,000 shares were originally issued and 12,600 were subsequently reacquired. What is the number of shares outstanding? Оа. 50,400 Оb. 63,000 Oc. 12,600 Od. 105,000 Previous Next
The following transactions relate to the shareholders' equity of Telecom Corporation for 2021, its initial year of operations and existence: 6. a. On January 7, the articles of incorporation were filed with the Securities and Exchange Commission (SEC). The SEC authorized the issuance of 10,000 shares of P50 par value preference share capital and 200,000 shares of P10 par ordinary share capital. On January 28, forty thousand ordinary shares were issued at P15 per share. On February 14, one hundred twenty thousand ordinary shares were issued in exchange for land and building that have an appraised value of P700,000 and P1,100,000, respectively. On this date, the shares trade at P15 per share on the over the counter market. On February 24, the company issued to the lawyers 2,000 ordinary shares for legal services in connection with the incorporation. The fair value of the shares on this date is P16. On September 12, the company received subscriptions for 10,000 preference shares at P53…
Rogers & Hart formed a corporation and had the following organization costs and stock transactions during the year: Transactions: June 30 Incurred the following costs of incorporation: Incorporation fees $ 900 Attorneys’ fees 6,000 Promotion fees 8,000 July 15 Issued 8,000 shares of $10 par common stock for $82,000 cash. Aug. 1 Received subscriptions for 10,000 shares of $10 par common stock for $101,500. 15 Issued 10,000 shares of $10 par common stock in exchange for a building with a fair market value of $104,800. 31 Received a payment of $51,500 for the common stock subscription. Sept. 3 Purchased 1,000 shares of its own $10 par common stock for $11 a share. 18 Received the balance in full for the common stock subscription and issued the stock. 30 Sold 500 shares of its treasury stock for $11.70 a share. Oct. 15 Issued 4,000 shares of $25 par, 8% preferred stock in exchange for land with a fair market value of $105,000. 31 Sold…
A corporation issued 250 shares of its $5 par value common stock in payment of a $3,300 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include: Multiple Choice O O A $1,250 debit to Organization Expenses. A $3,300 credit to Cash. A $3,300 debit to Common Stock. A $3,300 credit to Common Stock. A $2,050 credit to Paid-in Capital in Excess of Par Value, Common Stock.
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A corporation issued 180 shares of its $5 par value common stock in payment of a $2,600 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include: Multiple Choice A $2,600 debit to Common Stock. A $2,600 credit to Cash. A $900 debit to Organization Expenses. A $1,700 credit to Paid - in Capital in Excess of Par Value, Common Stock. A $ 2,600 credit to Common Stock.
On May 1, Year 3, the board of directors of Boxer Industries declared a property dividend of 4,500 shares of King Corporation common stock that Boxer had purchased as an investment (book value: $58,500). The market value of the 4,500 King shares was $121,500 (or $27 per share) on the date of declaration and $180,000 (or $40 per share) on the date of distribution. What amount will be debited to Retained earnings in the journal entry recorded on the declaration date? amount debited to retained earnings on the date of declaration?

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