PROBLEM 8-3Brunei Company has 50,000 shares of P10 par value share capital outstanding. In declaring anddistributing a 50% share dividend, Brunei initially issued only 20,000 new shares; the other sharedividend shares were not issued because some investors did not own Brunei shares in evenmultiples of 10. To these shareholders, Brunei issue fractional share warrants. Prepare journal entries necessary to record the following:a. Declaration of the share dividend.b. Issuance of the full and fractional share dividends.c. Issuance of full shares through the surrender of the required fractional warrants (Assume that80% of the fractional share warrants were ultimately turned in for shares)

Recording Journal entries are the modern method of recording business related transactions in which…

Answered: PROBLEM 8-3 Brunei Company has 50,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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PROBLEM 1: Mr. Queen Company is authorized to issue 80,000 ordinary shares. During the current year, the company issued 25,000 shares. REQUIRED: Prepare the required entry to record the issuance of the ordinary shares under each of the following assumptions: 1. The shares are no-par but have a stated value of P10. The total issue price was P850,000. 2. The shares are no-par and have no stated value. They were issued to a lawyer in exchange for services rendered in connection with the organization of the corporation. The lawyer would normally charge P70,000 for these services. There is no reasonable way to determine the fair market value of the stoc
9. Harvey Corporation shows the following in the shareholders' equity section of its statement of financial position: The stated value of its common shares is $0.25 and the total balance in the common shares account is $50,000. Also noted is that 15,000 shares are currently designated as being repurchased but not yet cancelled. The number of shares outstanding is: A)215,000 B)200,000 C)196,250 D)185,000
19-Company X’ currently has 80,000 shares outstanding that are trading at OMR 8.400 per share. The company decides to declare 5% stock dividend. How many additional shares should be issued to distribute stock dividend and how much will be the issue price per share? a. 5,000 shares;OMR 8 per share b. 4,000 shares;OMR 8.400 per share c. 4,000 shares; OMR 8 per share d. 8,000 shares; OMR 8.400 per share Clear my choice
PROBLEM 1: Mr. Queen Company is authorized to issue 80,000 ordinary shares. During the current year, the company issued 25,000 shares. REQUIRED: Prepare the required entry to record the issuance of the ordinary shares under each of the following assumptions: 1. The shares are no-par but have a stated value of P10. The total issue price was P850,000. 2. The shares are no-par and have no stated value. They were issued to a lawyer in exchange for services rendered in connection with the organization of the corporation. The lawyer would normally charge P70,000 for these services. There is no reasonable way to determine the fair market value of the stock.
ه يقوم الانتقال إلى سؤال آخر بحفظ هذا الرد. السؤال 8 Beta Corporation has 160.000 shares of common stock authorized, $1 par value, 90,000 shares issued and outstanding. Assume the company implements a 2-for-1 stock split. After implementing the stock split, the par value per share will be changed to per share $3.A O per share $2.BO per share $0.5.CO Will not change.D O
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17. The balance of the no par value common share account for Patrice Company was $240,000,000 before its recent 2-for-1 stock split. The market price of the shares was $50 per share before the stock split. What occurred as a result of the stock split? a.The market price of the shares was not affected. b.The balance in the common share account was increased. c.The market price of the shares dropped to approximately $25 per share. d.The balance in the retained earnings account decreased.
A14-25 Transactions, Comprehensive: Howard Corp. is a publicly owned company whose shares are traded on the TSX. At 31 December 20X4, Howard had unlimited shares of no-par value common shares authorized, of which 15,000,000 shares were issued. The shareholders' equity accounts at 31 December 20X4 had the following balances: Common shares (15,000,000 shares) $230,000,000 Retained earnings 50,000,000 During 20X5, Howard had the following transactions: a. On 1 February, a distribution of 2,000,000 common shares was completed. The shares were sold for $18 per share. b. On 15 February, Howard issued, at $110 per share, 100,000 of no-par value, $8, cumulative preferred shares. c. On 1 March, Howard reacquired and retired 20,000 common shares for $14.50 per share. d. On 15 March, Howard reacquired and retired 10,000 common shares for $20 per share. e. On 31 March, Howard declared a semi-annual cash dividend on common shares of $0.10 per share, payable on 30 April 20X5, to shareholders of…
Exercise 10-61 (Algorithmic)Issuing and Repurchasing Stock Canary Corp. had the following transactions related to its common and preferred stock: January 15 Sold 50,000 shares of $0.50 par common stock for $12 per share. Sold 2,000 shares of $10 par preferred stock at $14 per share. October 1 Repurchased 3,100 shares of the common stock at $20 per share. Required: Prepare the journal entries for the above transactions. Jan. 15 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 (Record sale of preferred and common stock) Oct. 1 fill in the blank 17 fill in the blank 19 (Record purchase of treasury shares)
Problem 5. Presented below is the Shareholders' Equity of Iligan Water Spring Resort Corporation: Authorized to issue 5,000 shares at par value of P100. Issued 4,000 shares of which 100 shares are in the treasury 400,000 10,000 180,000 10,000 Share Premium Retained Earnings (of which of P100,000 represents profit) Less: Treasury Shares at Cost Required: 1. Compute Book Value Per Share 2. Compute Basic Earnings Per Share

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