PROBLEM 37 On January 1, 2020, Evelyn Company acquired 10,000 shares of GHI Corporation for P600,000. GHI Corporation has the following equity account on January 1, 2020. 10% Non-Cumulative Preference Shares, par value P100; Authorized shares, 100,000; Issued and outstanding 50,000 shares 5,000.000 Ordinary Shares, P50 par value; Authorized shares, 500,000; Issued and outstanding, 75,000 shares Retained Earnings - 25,000,000 -10,000,000 On January 1, 2021, Evelyn acquired an additional 5,000 shares of GHI Corporation for P300,Q00. The acquisition resulted in 20% ownership, which is considered significant since Evelyn was able to get a seat in the board of directors of GHI Corporation. GHI Corporation has the following fair values of it shares as follows: 2020 - P65 per share 2021 -P72 per share

PROBLEM 37 On January 1, 2020, Evelyn Company acquired 10,000 shares of GHI Corporation for P600,000. GHI Corporation has the following equity account on January 1, 2020. 10% Non-Cumulative Preference Shares, par value P100; Authorized shares, 100,000; Issued and outstanding 50,000 shares 5,000.000 Ordinary Shares, P50 par value; Authorized shares, 500,000; Issued and outstanding, 75,000 shares Retained Earnings - 25,000,000 -10,000,000 On January 1, 2021, Evelyn acquired an additional 5,000 shares of GHI Corporation for P300,Q00. The acquisition resulted in 20% ownership, which is considered significant since Evelyn was able to get a seat in the board of directors of GHI Corporation. GHI Corporation has the following fair values of it shares as follows: 2020 - P65 per share 2021 -P72 per share

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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Contributed capital: Preferred shares, $4 cumulative, 15,000 shares authorized, issued and outstanding Common shares, 100,000 shares authorized; 60,000 shares issued and outstanding Western Grass Inc. Equity Section of Balance Sheet December 31, 2023 Total contributed capital Retained earnings Total equity a. b. Book Value of Common Shares 144,000 300,000 $ 444,000 584,000 $1,028,000 $ Required: Using the information provided, calculate book value per common share assuming: (Round the final answers to 2 deci a. There are no dividends in arrears. b. There are three years, of dividends in arrears. 27
On January 1, 2020, Chen Company acquired 10,000 shares of GHI Corporation for P600, 000. GHI Corporation has the following equity account on January 1, 2020. 10% Non-Cumulative Preference Shares, par value P100; Authorized shares, 100,000; Issued and outstanding, 50,000 shares - P 5,000,000 Ordinary Shares, P50 par value; Authorized shares, 500,000; Issued and outstanding, 75,000 shares Retained Earnings - 25,000,000 - 10,000,000 On January 1, 2021, Chen acquired an additional 5,000 shares of GHI Corporation for P300, 000. The acquisition resulted in 20% ownership, which is considered significant since Chen was able to get a seat in the board of directors of GHI Corporation. GHI Corporation has the following fair values of its shares as follows: 2020 - P65 per share 2021 - P72 per share GHI Corporation reported the following at year-end: Net Income Dividends 2020 2021 P5,000,000 6,500,000 P2,000,000 3,000,000 Requirements: 1. Prepare the necessary journal entries to record the above…
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Problem 2 Resolve Corporation began operations on January 1, 2020. The company was authorized to issue 60,000 shares of P10 par value common stock and 120,000 shares of 10%, P100 par value convertible preferred stock. In connection with your audit of the company’s financial statements, you noted the following transactions involving stockholders’ equity during 2020:Jan. 1 Issued 1,500 shares of common stock to the corporation promoters in exchange for property valued at P510,000 and services valued at P210,000. The property costs P270,000 3 years ago and was carried on the promoters’ books at P150,000.31 Issued 30,000 shares of convertible preferred stock at P150 per share. Each share can be converted to five shares of common stock. The corporation paid P225,000 to an agent for selling the shares.Feb. 15 Sold 9,000 shares of common stock at P390 per share. The corporation paid issue costs of P75,000.May 30 Received subscriptions for 12,000 shares of common stock at P450 per share.Aug.…
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Harris Corporation Stockholders’ Equity December 31, 2022 Common Stock ($1 par, 100,000 authorized, 50,000 issued & outstanding)$ 50,000Additional Paid-in-Capital 150,000 Retained Earnings 500,000 Total Stockholders’ Equity$ 700,000 ==== • On March 1, 2023, the company issued an additional 5,000 shares of common stock for $25 per share. • On April 1, 2023, the company declared a 10% stock dividend, payable on May 15th, when the market value was $30 per share. • On August 1, 2023, the company declared a 60% stock dividend, payable on September 15th, when the market value was $40 per share. • On November 1, 2023, the company repurchased 10,000 of its shares for $35 per share. • Net income for 2023 was $400,000. • A $0.50 per share cash dividend was declared on December 20, 2023, payable February 1, 2024. Using the cost method to account for treasury stock, prepare all necessary 2023 journal entries and prepare the…
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