Marasigan Corp. had the following shareholders' equity section on iB statement of financial position as at Dec. 31, 2018: 6% Preference Shares, PSO par, 100,000 shares authorized, 40,000 shares issued and outstanding Ordinary Shares, P1 par, 1,000,000 shares authorized, 300,000 shares issued Share Premium-Ordinary Retained Earnings Treasury Stock-Ordinary, 10,000 shares at cost P 2,000,000 300,000 4,700,000 35,200,000 (320,000) P41,880,000 Total Shareholders' Equity During 2019 the following events occurred related to shareholders' equity: a. Sold 3,000 shares of the treasury stock for P20 per share. b. Declared and distributed as property dividend the investments in equity securities held by Marasigan to ordinary shareholders. The securities had a carrying value of P400,000. Its fair market value was P750,000 on the date of declaration, P760,000 - on the date of record, and P756,000 on the date of distribution. C. Declared a 5% ordinary share dividend. Market value was P40 per share. d. Declared and paid the annual cash dividends to preference shareholders. Required: Prepare the journal entries.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Prepare the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
