On April 2, 2021, ABC Corporation issued for cash 12,000 shares of no-par ordinary shares with a stated value of P13 per share at P17. On April 17, it issued for cash 800 shares of P110-par 10% preference shares at P112. Required: a. Prepare the journal entries for April 2 and April 17. b. Determine the total amount of investment as of April 17.

On April 2, 2021, ABC Corporation issued for cash 12,000 shares of no-par ordinary shares with a stated value of P13 per share at P17. On April 17, it issued for cash 800 shares of P110-par 10% preference shares at P112. Required: a. Prepare the journal entries for April 2 and April 17. b. Determine the total amount of investment as of April 17.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 19P: Anoka Company reported the following selected items in the shareholders equity section of its...

See similar textbooks

Similar questions

Oregon Inc. makes an initial investment of $100,000 for 8,000 shares of the voting stock of Bear Claw Corp. 20,000 shares outstanding on January 1, 2020. In 2020 Bear Claw has earnings of $30,000 and declares and pays dividends of $10,000 on December 31. The market value of Bear Claw Corp. stock is $11.50 per share. Treat each situation below as independent situations. a - Prepare the necessary journal entries based on the above information. (Hint you should have 3.) b – Prepare the necessary journal entries based on the above information. Assume that Bear Claw cannot exert significant influence on the operations of Bear Claw Corp. (assume the decline in market value is considered an impairment on the value due to lost market share). (Hint you should have 3.)
Required: A. Prepare journal entries to record the transactions.B. Present the shareholders' equity on December 31, 2020. Show your detailed solutions.
4. ABC Co. issued a prospectus for the issue of 900,000shares at $6 per shares on 1 January 2019. The prospectus specified that $3.50 was payable on application, a further $1.25 was payable on allotment and the final $1.25 was payable at call. On 31 January 2019 ABC issued 300,000 shares. On 31 May 2019, the company made the call for the outstanding balance of $1.25 per share. The call was payable by 30 June 2019. At 30 June 2019, the call on 30,000 shares remained unpaid.Instructions:b) The Share Capital that would appear in the Balance Sheet of ABC Co. (2marks)
4. ABC Co. issued a prospectus for the issue of 900,000shares at $6 per shares on 1 January 2019. The prospectus specified that $3.50 was payable on application, a further $1.25 was payable on allotment and the final $1.25 was payable at call. On 31 January 2019 ABC issued 300,000 shares. On 31 May 2019, the company made the call for the outstanding balance of $1.25 per share. The call was payable by 30 June 2019. At 30 June 2019, the call on 30,000 shares remained unpaid.Instructions:a) Prepare the journal entries to account for the issue of shares for ABC andb) The Share Capital that would appear in the Balance Sheet of ABC Co.
4. ABC Co. issued a prospectus for the issue of 900,000shares at $6 per shares on 1 January 2019. The prospectus specified that $3.50 was payable on application, a further $1.25 was payable on allotment and the final $1.25 was payable at call. On 31 January 2019 ABC issued 300,000 shares. On 31 May 2019, the company made the call for the outstanding balance of $1.25 per share. The call was payable by 30 June 2019. At 30 June 2019, the call on 30,000 shares remained unpaid. Instructions: a) Prepare the journal entries to account for the issue of shares for ABC and b) The Share Capital that would appear in the Balance Sheet of ABC Co.
What is the total equity that must be reported in the Statement of Changes in Equity for the year ended December 31, 2021?
Pupil, Inc. prepares this journal entry on June 30, 2019. Issued ordinary share capital for P140/share. DR Cash P70,000 CR Ordinary share capital P65,000 CR Ordinary share premium P5,000. How many shares were issued? Using data above, what is the par value per share for this share capital?
What is the correct balance of TOTAL SHARE PREMIUM on December 31, 2021?
Prepare the note disclosure required (e) On 10 September 2021, the company paid a dividend of $210,000, which was declared on 14 July 2020. The company also declared and paid an interim dividend on 25 March 2022 from the retained earnings. (f) Share capital at 1 July 2021 comprised 1,000,000 ordinary shares. These were issued in April 2019 at an issue price of $3.50 and are fully paid. In relation to this issue $32,000 share issue costs were incurred, and these were paid by the company in May 2019. In November 2021 the company issued a prospectus inviting applications for 2,000,000 ordinary shares at an issue price of $4.00, with $3.00 payable on application and $1.00 due on allotment. All of these shares were issued in January 2022. All of the money required on allotment was received by the end of February 2022. Share issue costs in relation to this issue totalled $22,000 and were paid on 7 March 2022. (g) On 30 June 2022, the directors decided to transfer $4,000,000…
a. Prepare journal entries b. Assuming that the profit for the year amounted to P450,000, prepare the shareholders' equity section of the statement of financial position as at Dec. 31, 2018. Gloria Detoya Corporation was authorized to issue 900,000 shares of 5%, $100 par value preference shares and 1.5 million shares of no- par, $5 stated value ordinary shares. The ff. transactions occurred during 2018: Feb. 2) 24,000 ordinary shares were sold to a group of investors at $24 per share. Feb 15) 5,500 preference share were issued to an individual in exchange for a parcel of land to be held for future development. The land has a fair market value of $795,000. The preference shares was not actively traded. Apr. 30) 2,500 ordinary shares were issued to a lawyer in exchange for services rendered in forming the corporation. The stock was currently trading at $31 a share. All parties agreed that this represented the value of the lawyer's services. Nov. 20) Additionally 7,000 ordinary…
Required:A. Prepare journal entries to record the above transactions.B. Prepare the stockholder’s equity section as of December 31, 2018.
COMPUTE AND SHOW YOUR COMPUTATION FOR THE ADJUSTED BALANCES OF THE FOLLOWING AS OF DECEMBER 31,2019. 7. TOTAL CONTRIBUTED CAPITAL = 8. TOTAL STOCKHOLDER'S EQUITY =