Problem #2 (20 points) Donations of Assets and Shares Marasigan Corp. received the following items as donations during 2018:
Problem #2 (20 points)
Donations of Assets and Shares
Marasigan Corp. received the following items as donations during 2018:
Mar. 21 Arias Realty gave the corporation 5 hectares of land valued at P6,000,000. Marasigan agreed to build a distribution warehouse on the property and to employ at least 50 local residents.
Apr. 30 A shareholder donated 10,000 shares of Marasigan P200 par ordinary shares. The stock was selling for P425 per share on Apr. 30.
June 25 Bobadilla Holdings donated a mobile office, which was moved to the donated land and used as a temporary office. An independent appraisal established the value of the mobile office at P675,000.
July 15 4,000 of the ordinary shares received as a donation on Apr. 30 were sold for P1,820,000.
Required:
- Prepare
journal entries to record the transactions related to the donations. - Compute the amount of donated capital that Marasigan Corporation would present on Dec. 31, 2018
statement of financial position .
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