MAKE T-ACCOUNT for the following:Ordinary shares Preference shares Share premium- Ordinary shares Share premium- Preference shares Share premium- Treasury shares Total additional paid-in capital Total contributed capital Total stockholders’ equity PROBLEM 1: You were assigned to audit the shareholders' equity of Glory Inc. for the year endedDecember31, 2019. Glory Corp. was incorporated in early 2018 when it was authorized by SEC to issue500,000 ordinary shares (P10 par) and 100,000 convertible preference shares (P20 par). The followingschedule reflects the company's capital balances as of December 31, 2018:Ordinary shares, 100,000 shares issued during the company'sincorporation in exchange of a land with a fair value of P1.4 M.Preference shares, 50,000 shares issued during the company'sincorporation at PS0 per share. Each preference share is convertibleto four ordinary sharesRetained earnings, which is the company's net income in 2018P1,400,0002,500,000540,000Total shareholders' equityP3.440.000 Glory Inc.Journal EntriesDateAccounts TitleDebitCreditJan 15Treasury Shares440,000Cash440,000(To record purchase of treasury shares)Feb 11Cash112,000Share Premium - Treasury24,000Treasury Shares88,000(To record reissuance of treasury shares)Mar 5Cash114,000Share Premium - TreasuryTreasury Shares18,000132,000(To record reissuance of treasury shares)Apr 1 Ordinary Shares50,000Share Premium - TreasuryRetained EarningsTreasury Shares6,00054,000110,000(To record retirement of shares)May 12 Preference Shares400,000Ordinary SharesShare Premium - Ordinary Shares100,000300,000(To record conversion of preference into ordinary shares)Jun 9Cash175,000Ordinary SharesShare Premium - Ordinary Shares150,00025,000(To record shares subscribed)Jul 4No EntryJul 4Cash24,000Retained EarningsTreasury Shares(To record reissuance of treasury stock)42,00066,000i.Cash44,000Ordinary SharesShare Premium - Ordinary Shares(To record issuance of ordinary shares)40,0004,000j.Income Summary830,000Retained Earnings830,000(To record profit transferred to retained earnings)

Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…

MAKE T-ACCOUNT for the following: Ordinary shares Preference shares Share premium- Ordinary shares Share premium- Preference shares Share premium- Treasury shares Total additional paid-in capital Total contributed capital Total stockholders’ equity

MAKE T-ACCOUNT for the following: Ordinary shares Preference shares Share premium- Ordinary shares Share premium- Preference shares Share premium- Treasury shares Total additional paid-in capital Total contributed capital Total stockholders’ equity

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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A company’s publicly listed shares: a. Can be traded on any share market around the world b. Represent an ownership claim on the company’s real assets (net of liabilities) c. Are guaranteed to provide a dividend cash-flow d. All of the above e. None of the above
please step by step answer.
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