PROBLEM 3: EXERCISESPROBLEM 3: EXERCISES1. On May 22, 20x1, Sloppy Co. agreed to issue 10,000 shares(P200 par) to Careless, Inc. in exchange for 1,000 units of Rawmaterial X. The price of Raw material X is volatile. Carelessdelivered the inventories on June 21, 20x1. Sloppy issued theshares on July 5, 20x1. Information on fair values is as follows:Sloppy sharesP218 per shareRaw materialAMay 22, 20x1P2,180 unitperP3,000 per unitP3,650 per unitJune 21, 20x1P220 per shareJuly 5, 20x1P225 per shareRequirement: Provide the journal entries.

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PROBLEM 3: EXERCISES 1. On May 22, 20x1, Sloppy Co. agreed to issue 10,000 shares (P200 par) to Careless, Inc. in exchange for 1,000 units of Raw material X. The price of Raw material X is volatile. Careless delivered the inventories on June 21, 20x1. Sloppy issued the July 5, 20x1. Information on fair values is as follows: Raw materialA P2,180 per unit shares on Sloppy shares May 22, 20x1 June 21, 20x1 P218 per share P220 per share P3,000 per unit July 5, 20x1 P225 per share P3,650 per unit Requirement: Provide the journal entries.

PROBLEM 3: EXERCISES 1. On May 22, 20x1, Sloppy Co. agreed to issue 10,000 shares (P200 par) to Careless, Inc. in exchange for 1,000 units of Raw material X. The price of Raw material X is volatile. Careless delivered the inventories on June 21, 20x1. Sloppy issued the July 5, 20x1. Information on fair values is as follows: Raw materialA P2,180 per unit shares on Sloppy shares May 22, 20x1 June 21, 20x1 P218 per share P220 per share P3,000 per unit July 5, 20x1 P225 per share P3,650 per unit Requirement: Provide the journal entries.

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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