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

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please, explain the steps very clearly.
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
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.
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 10-2 Declan Company issues a $120,000 on 12/31/X0, 10%, bond that matures in 3 years. Interest is paid on December 31st of each year. Prepare all journal entries for all years related to this bond issue if it was priced to yield: 8% 10% 12% Problem 10-3 Still Declan Company - How about an 9% zero issued on 12/31/X0, due in 3 years, face amount of $120,000. How much would you pay? Amortize it.
Show the necessary solution.
4.5 Hudson plc's outline statement of financial position as at a particular date was as follows: £m 72 Net assets (assets less liabilities) Equity Ordinary shares General reserve Total equity 40 32 72 The directors made a one-for-four bonus issue, immediately followed by a one-for-four rights issue at a price of £1.80 per share. Required: Show the statement of financial position of Hudson plc immediately following the two share issues.
PLease answer only B3, B4, B5
Exercise 10-13 (Algo) Record stock dividends and stock splits (LO10-6) On September 1, the board of directors of Colorado Outfitters, Incorporated, declares and issues a stock dividend on its 11,000, $2 par, common shares. The market price of the common stock is $31 on this date. Required: 1. 2. & 3. Record the necessary journal entries assuming a small (10%) stock dividend, a large (100%) stock dividend, and a 2-for-1 stock split. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Next >
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315 Chepter 8-Organication and Formation of a Corporation The Security Corporation was organized on May 1, 2014 and is authorized to issue 500,000 Exercise 8- 3 (Issuance of Various Classes of Share Capital for Cash) hares of ordinary share capital. Subsequently, 250,000 shares were issued at P25 per apital of P Instructions: Prepare the journal entries to record authorized share capital and the issuance of the 250,000 shares using the memorandum entry method under each of the following independent assumptions: share. 1. Each ordinary share has a par value of P20. 2. Each ordinary share has a stated value of P15. 3. The ordinary shares have no par and no stated value. res for

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