Problem 2: Issuance of Shares and SubscriptionReyes Corp. has been authorized to issue 100,000 preference share at P100 parvalue and 200,000 ordinary share at P80 stated value. The followingshareholders' equity transactions during 20x1 follows:a. Issued 10,000 shares for cash of P120 per share.b. Issued 25,000 ordinary share for land with fair value of P2,200,000, the fairvalue of share is P85 per share.c.15,000 preference shares were subscribed at P115 per share.d. Collected P1,500,000 for preference share subscription.e. 50,000 ordinary shares were subscribed for P4,500,000.f. Collected 40% of ordinary share subscriptiong. Collected the balance on the preference share subscription and issuedstock certificates.h. Issued 30,000 ordinary shares for settlement of an outstanding bank loanof P 3,000,000, including accrued interest of P 20,000. On this date, sharesare quoted at P120 per share.i. Net income for the year 1,200,000Required: Prepare the journal entries underA. Memorandum methodB. Journal Entry method

JournalDateAccounts Title and ExplanationDebitCredita.Cash Dr (10,000 x 120)1,200,000Preference…

Answered: Problem 2: Issuance of Shares and…

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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MC Qu. 11-74 Anthem Inc. issues... Anthem Inc. issues 200,000 shares of stock with a par value of $0.11 for $160 per share. Three years later, it repurchases these shares for $90 per share. Anthem records the repurchase in which of the following ways? Multiple Choice Debit Common Stock for $22,000, debit Additional Paid-in Capital for $31,978,000 and credit Cash for $32.00 million. Debit Treasury Stock for $18.00 million and credit Cash for $18.00 million. Debit Common Stock for $22,000, debit Additional Paid-in Capital for $17,978,000 and credit Cash for $18.00 million. Debit Stockholders' Equity for $32.00 million, credit Additional Paid-in Capital for $18.00 million and credit Cash for $18.00 million.
Memorandum method vs. Journal entry method Horizon Co. was incorporated in 20x1. The following were the transactions: ur 6 Received authorization from the SEC to issue share capital of P3,000,0000 divided into 600,000 shares with par value per share of P5. lan. 6 25% of the authorized capitalization was subscribed at par value and 25% of the total subscription was paid. Lat. 31 Received full payment for 120,000 subscribed shares and issued the related share certificates. Teh. 14 Received cash subscription for 60,000 shares at P20 per share. Share issuance costs of P12,000 were incurred. Feb. 28 Received subscription for 150,000 shares at P25 per share. Requirements: Provide the journal entries under (1) memorandum method and (2) journal entry method. h Prepare the share capital portion of Horizon Co.'s statement of financial position as of February 28, 20x1.
PLease answer only B3, B4, B5
6. Thistle Limited has the following information at 31 December 20X5. • 1,000,000 common shares outstanding with the par value of $0.50. Net income for the year is $1,330,000. Net income attributable to equity holders of the company is $1,230,000. Net income attributable to non-controlling interest of the subsidiaries is $100,000. • Options of 500,000 shares with the exercise price of $3.25 per share. Convertible 10% bonds of $1,000,000 convertible in year 20X6 into 250,000 common shares. Convertible 8% preferred shares of $1 each totaling $1,000,000 convertible in year 20X7 at 1 common share for every 40 preferred shares. • Tax rate is 40%. Year-end market price per common share is $4.25. Average market price per common share is $4. a. Calculate basic earnings per share. b. Calculate diluted earnings per share by applying the procedure and sequential steps in the lecture note.
PLease answer only B6 and B7
4. During the current year, an entity issued 20,000 preference shares of P100 par value for P3,250,000 with 20,000 warrants to acquire 10,000, P50 par value ordinary shares at P60 per share. On the date of the issuance, the market values are 120 for preference and 10 for a warrant. If subsequently, 75% of the warrants were exercised, the amount that will be credited to share premium-issuance is?

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