PROBLEM 1: You were assigned to audit the shareholders' equity of Glory Inc. for the year ended December31, 2019. Glory Corp. was incorporated in early 2018 when it was authorized by SEC to issue 500,000 ordinary shares (P10 par) and 100,000 convertible preference shares (P20 par). The following schedule reflects the company's capital balances as of December 31, 2018: P 1,400,000 Ordinary shares, 100,000 shares issued during the company's incorporation in exchange of a land with a fair value of P1.4 M. Preference shares, 50,000 shares issued during the company's incorporation at P50 per share. Each preference share is convertible to four ordinary shares Retained earnings, which is the company's net income in 2018 Total shareholders' equity 2,500,000 540,000 P 3,440,000 Your inquiries and investigation revealed the following transactions, which occurred in 2019:

PROBLEM 1: You were assigned to audit the shareholders' equity of Glory Inc. for the year ended December31, 2019. Glory Corp. was incorporated in early 2018 when it was authorized by SEC to issue 500,000 ordinary shares (P10 par) and 100,000 convertible preference shares (P20 par). The following schedule reflects the company's capital balances as of December 31, 2018: P 1,400,000 Ordinary shares, 100,000 shares issued during the company's incorporation in exchange of a land with a fair value of P1.4 M. Preference shares, 50,000 shares issued during the company's incorporation at P50 per share. Each preference share is convertible to four ordinary shares Retained earnings, which is the company's net income in 2018 Total shareholders' equity 2,500,000 540,000 P 3,440,000 Your inquiries and investigation revealed the following transactions, which occurred in 2019:

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 8MCQ

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Question

1. Journal entries for each of the transaction

h. On August 8, the company reissued 3,000 treasury shares at P8 per share.
i. The company issued 4,000 ordinary shares for P11 per share.
j. The company registered an adjustments net income in 2019 at P830,000.

PROBLEM 1: You were assigned to audit the shareholders' equity of Glory Inc. for the year ended
December31, 2019. Glory Corp. was incorporated in early 2018 when it was authorized by SEC to issue
500,000 ordinary shares (P10 par) and 100,000 convertible preference shares (P20 par). The following
schedule reflects the company's capital balances as of December 31, 2018:
Ordinary shares, 100,000 shares issued during the company's
incorporation in exchange of a land with a fair value of P1.4 M.
Preference shares, 50,000 shares issued during the company's
incorporation at P50 per share. Each preference share is convertible
to four ordinary shares
Retained earnings, which is the company's net income in 2018
Total shareholders' equity
P1,400,000
2,500,000
540,000
P 3,440,000
Your inquiries and investigation revealed the following transactions, which occurred in 2019:

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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