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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The securities owned by Jane Company were held as a long-term investment. During the currentyear, the following transactions occurred:Jan. 1 Purchased 15,000 shares of ABC Company at P70 per share.May 1 Purchased 8,000 shares of XYZ Corporation for P660,000.Apr 1 Received a cash dividend of P6 per share from ABC Company.July 1 Received a share for a share dividend from XYZ Corporation.Aug 1 Purchased 10,000 shares of GHI Enterprises at P75 each.Oct 1 Received a cash dividend of P6 per share from ABC Company.Oct 31 XYZ Corporation offered shareholders rights to subscribe to one new share for every tenrights tendered at P25. At the time of issuance, the market value of the right is P4. Sharerights are not accounted for separately.Nov 15 Exercised the XYZ Corporation’s share rights.Dec. 1 Sold 10,000 shares of XYZ Corporation at P35 per share. Use the FIFO approach indetermining the cost of the shares sold.Dec. 31 The fair values of the portfolio is as follows:ABC Company – P73 per…
On December 1, DOS Corporation issued 1,000 shares of its ₱10 par ordinary share capital and 2,000 shares of its P10 par preference share capital for a lump sum of ₱ 40,000. At this date, ordinary share is selling for ₱18 per share and the preference share for ₱13.50 per share. How much should the “Ordinary Share Capital” account be credited? (The entry to record the issuance of the shares serves as the solution for this problem) *
ABC Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares of 8% preference shares, P130 par value, and 150,000 shares of ordinary shares, P70 par value. Transactions for the year were as follows: Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair market value of P400,000 May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment were received. How much is the legal capital at the end of the year 2021?
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Al Sharqiyah Company has RO 1 par value ordinary shares that are currently at RO 20 per share. The company issued 4,000 shares to purchase land recently advertised at RO 82,000. When recording this transaction, the Company will
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The Business charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: VIK purchased a piece of land from the original owner. In payment for the land, VIK issue 350,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of 1, 350,000 The company sold 110,000 shares of common stock with $1 par value Issued 22,000 shares of $18 par value preferred stock. Shares were issued at par. Earned net income of $850,000 Dividend declared and paid - $0.15 per share on common stock Dividend declared and paid - $5 per share on preferred stock Prepare the Journal entries closing entries for the above transaction
S7.
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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.

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