NAME:SCORE:SECTION:PROFESSOR:Problem #13Share Issuances for Cash and Non-Cash ConsiderationsOn Jan. 1, 2018, the following accounts and their balances appeared in the ledger ofFuentes Corporation:Preference P9 Shares, P100 par, 10,000 sharesauthorized, 5,000 shares issuedShare Premium-PreferenceP 500,00080,000Ordinary Shares, P20 par, 100,000 shares authorized,75,000 shares issuedShare Premium-OrdinaryRetained Earnings1,500,000125,000505,000At the annual shareholders' meeting on Feb. 11, the board of directors presented a planfor modernizing and expanding plant operations at a cost of approximately P600,000.The plan provided (a) that the corporation borrow P175,000, (b) that 1,000 shares of theunissued preference shares be issued through an underwriter, and (c) that a buildingvalued at P280,000, and the land on which it is located, valued at P50,000, be acquiredin accordance with preliminary negotiations by the issuance of 15,000 ordinary shares.The plan was approved by the shareholders and accomplished by the followingtransactions:Issued 15,000 ordinary shares in exchange for land and a building,according to the plan.Mar. 3Issued 1,000 preference shares, receiving P105 per share in cashfrom the underwriter.1531Borrowed P175,000 from Philippine National Bank, giving a 12%mortgage note.No other transactions occurred during March.Required:1. Journalize the entries to record the foregoing transactions.2. Prepare the shareholders' equity section of the statement of financial position as atMarch 31, 2018.

NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Mar. 3 Issued 15,000 ordinary shares in exchange for land and a building, according to the plan. 15 Issued 1,000 preference shares, receiving P105 per share in cash from the underwriter. 31 Borrowed P175,000 from Philippine National Bank, giving a 12% mortgage note. No other transactions occurred during March. Required: 1. Journalize the entries to record the foregoing transactions.

Mar. 3 Issued 15,000 ordinary shares in exchange for land and a building, according to the plan. 15 Issued 1,000 preference shares, receiving P105 per share in cash from the underwriter. 31 Borrowed P175,000 from Philippine National Bank, giving a 12% mortgage note. No other transactions occurred during March. Required: 1. Journalize the entries to record the foregoing transactions.

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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