Record the foregoing transactions E. Received subscription for 20,000 shares at P550 per share,500 par value, receiving 25% down payment. F. Collected balance of the subscription price on the 12,000 shares subscribed in (e) and share certificates were accordingly issued.

Record the foregoing transactions E. Received subscription for 20,000 shares at P550 per share,500 par value, receiving 25% down payment. F. Collected balance of the subscription price on the 12,000 shares subscribed in (e) and share certificates were accordingly issued.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Grouper Company has bonds payable outstanding in the amount of $350,000, and the Premium on Bonds…

A: Introduction: Preferred stock is similar to a regular stock in that it is a share in a corporation,…

Q: Sandhill Ltd. offered to sell common shares on a subscription basis. Each subscription allowed for…

A: Share subscription is the procedure through which people or organizations buy freshly issued shares…

Q: At 1 January 20X9, company X had in issue 10 million ordinary shares. On 30 April 20X9, company X…

A: Earnings per share (EPS) is one of the important calculation done in business. This is calculated by…

Q: ABC Ltd, issued a prospectus for inviting application from the public for 10,000 equity shares of "…

A: Introduction:- A journal entry is the act of recording or keeping track of any financial or…

Q: RM 1.25 each, fully paid. On 2 January 2021,40,000 ordinary shares of RM 1.25 each were offered to…

A: Issuance of Shares For issuing the shares to the public which has different phase like invite share…

Q: V6. On January 1, Stunt Corp. had outstanding convertible bonds with a face value of $1,000,000 and…

A: Lets understand the basics. Bond is a liability of the company but on other hand equity is a owners…

Q: BFAR Corp. has ordinary share capital with par value of P50, and preference share capital with par…

A: Share capital refers to the equity capital of the funds raised by the company by the issuance of…

Q: Arul Co. Ltd., has to redeem redeemable preference shares of the value of Rs. 4,00,000 at a premium…

A: Capital Redemption Reserve Account is maintained due to the companies act. It is related to buy -…

Q: Advance Medical Imaging, Inc. reacquired 2,000 shares of its $5 par common stock at $15 a share. The…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Mars Corporation recorded the following journal entry: Land 450,000 Preference share capital Share…

A: No. of shares issued = Value of Land / Issue price per share = 450000/120 = 3750 shares

Q: Muscat Co. issues 4,500 ordinary shares with a RO 12 par value at RO 21 per share. What should be…

A: Journal entry: It is a set of economic events that can be measured in monetary terms. These are…

Q: How much share premium to be recorded from the following: * PAS Co. started operations on January 1,…

A: The share premium is the excess value received as compared to par value of the shares.

Q: The following transactions were taken from BFAR Corporation: Authorized Ordinary share capital of…

A: The company's share capital is composed of a small part, and each part of the capital is called a…

Q: BFAR Corp. has 500,000 shares authorized and has the following information at the end of its first…

A: Shares are a type of securities, the holders of which get rights to participate in the profits of…

Q: PROBLEM 8-3 Brunei Company has 50,000 shares of P10 par value share capital outstanding. In…

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

Q: XYZ Ltd issued 2,000,000 ordinary shares of Sh. 20 at Sh. 23 payable as follows: On application sh…

A: When shares in the business are sold at a price more than par value of shares, then additional…

Q: International Co. issues 4,000 shares of its $5 par value common stock having a fair value of $25…

A: The different shares are issued at lump sum amount, then at can be allocated to different shares…

Q: On 30 April, MBC Company issued 60 000 shares for $12 each, payable $4 on application, $4 on the…

A: Share Issued = 60,000 shares Share Subscribed = 60,000 - 10,000 = 50,000 shares Share Application…

Q: Sully Sports Cars Co. entered into a subscription contract with various investors. The terms were as…

A: Journal means the book of original entry where the entry is passed for the very first time after…

Q: td have issued 220,000 ordinary shares at a price of £1.40 e hal value of 95 pence each. is the…

A: Journal Entry -Business transactions are entered into your financial books through the procedure of…

Q: ABC issued 10,000 common shares with a par value of $ 5 and a market value of $ 25 per share along…

A: The correct answer is Option (a).

Q: Sheba Ltd.’s statement of financial position shows ordinary share capital of £150,000 and share…

A: An ordinary share, also known as a common share, is a type of equity ownership in a company.…

Q: Q.1 Company offered 10,000 ordinary shares of Rs. 10 at Rs. 12. Company received 8,000 shares…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: A. BBB Company authorized to issue 37,500 share capital with par value of P100 B. 40% of the…

A: The details are given by the company regarding share capital and issues Required a. How much is…

Q: Waterway Corporation had the following shareholders' equity on December 31, 2022: Common shares,…

A: In the accounting books of the business organizations the journal entry served as a record of its…

Q: amount credited to share premium from ordinary shares?

A: Total amount of issue P3,000,000 Less Ordinary shares at par value (25,000 shares @P50)…

Q: Retained Earnings Subscribed Ordinary Shares, 2 000 shares Long-term Notes Payable 5% Preference…

A: Shareholders' Equity denotes the net worth of the business and this can be arrived at by subtracting…

Q: a) Record the journal entry for the initial transaction. b) What is the Journal entry at the time…

A: Any Excess amount received in excess of the Par Value of common Stock is known as Premium.

Q: for 5 equity shares. Journalize the information.

A: Number of bonus shares issued = 450,000/ 5 *1…

Q: Last year the issued share capital of M Bhd was RM 75,000 divided into 60,000 shares of RM 1.25…

A: If the company receives share application more than the shares issued to the public, it is the case…

Q: FPJ Inc. received subscription for 5,250 Preference Shares at P 10 above par value of P 200 per…

A: Common shares and Preference shares are two type of shares being issued by the company for raising…

Q: Foley Co. bought 50 shares of its stock for $8 per share to be held as Treasury Stock. Record this…

A: The treasury stock are the purchase of its own shares from the market.

Q: eslie company issued 60,000 shares with a par value of 100 in exchange for a land with fair value of…

A: Share premium is the amount of capital which is received over and above from the face value or par…

Q: B. Extract from the Balance Sheet: Tangible/Fixed assets at Carrying value Fixed Deposit Ginger…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want a…

Q: July 1- Sold 1,000 subscriptions for common shares at $20 per share. Subscribers paid $5 per share…

A: Common shares can be issued on subscriptions basis where shares are issued on receipt of last…

Q: (a) Briefly explain TWO (2) methods of payment for the issuance of share. (b) MOLLY Berhad decided…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Vaughn Corporation sold 390 shares of treasury stock for $55 per share. The cost for the shares was…

A: A journal entry is a formal accounting record used to capture and record financial transactions in a…

Q: Pass Journal entries in the books of the company assuming that all allotment money was received and…

A: Application money on 4000 Shares 4000 * 3 12000 Due towards application 2000 * 3 6000 Excess…

Question

100%

Record the foregoing transactions

E. Received subscription for 20,000 shares at P550 per share,500 par value, receiving 25% down payment.

F. Collected balance of the subscription price on the 12,000 shares subscribed in (e) and share certificates were accordingly issued.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

A corporation accepted subscriptions to 25,000 shares of no par value common at $5.50 per share. The subscription contracts called for 20% down payments with the balance in 30 days. The explanations for several entries involving these shares follow. Complete the entries. DATE ACCOUNT TITLES AND EXPLANATION P.R. DEBIT CREDIT Sept. 5 Accepted subscriptions to 25,000 shares of common at $5.50 per share. Received $27,500 from the common share subscribers as down payments on their shares. Oct. Received payment in full of the balance due on the September 5 common share subscriptions. 5 Issued the common shares of the fully paid subscribers.
BFAR Corp. was formed on June 1 with 100,000 authorized shares having a par value of P20. The following transactions occurred: • June 15: Issued 827 shares at P22 per share June 20: Received subscriptions for 1,162 shares at P23 per share with 25% down payment • June 25: Received subscriptions for 410 shares at P26 per share with 30% down payment June 30: Collected the June 20 subscription in full How much is the balance of the Share Capital account as of June 30? ● .
mc attached
Plz solve !!
AB Co issues 5.000 50c shares for $6.000. Required: What are the amounts for share capital and share premium in the statement of financial position?
Prepare the journal entry to record Autumn Company's issuance of 68,000 shares of no-par value common stock assuming the shares: a. Sell for $31 cash per share. b. Are exchanged for land valued at $2,108,000.
Nizwa Co. issues 2,000 ordinary shares with a RO 10 par value at RO 16 per share. What should be recorded for this transaction.
17. 4-6 A. BBB Company authorized to issue 37,500 share capital with par value of P100 B. 40% of the authorized share capital was subscribed at par C. Collected 45% of the of the subscription D. Full collection was received on 10,500 shares originally subscribed E. Cash subscription of 4,500 shares at par F. Building with the fair value of P700,000 was acquired upon issuance of 6,750 shares. The market value of the shares at that time was P110. G. Purchased 3,750 treasury shares at P95. H. Reissued 2,250 treasury shares at P98. I. Net income for the year is P1,350,000 J. Issued 20,250 warrants to shareholders, 1 right for each share, permitting the holders to acquire one shar capital of P100 at P105 with every 10 rights submitted. Share are selling at P99 per share at this time. K. Declared property dividend. The property has the fair value of P200,000 at the date of declaration and P185,000 carrying amount L. Received 500 shares donated by a shareholder. The fair value of shares at…
In 2007, Xero Ltd. offered a subscription of 15 million shares at an offer price of $1.00 per share with the ability to accept oversubscriptions of up to $3 million. The prospectus detailed the requirement that all applications must be accompanied by payment in full for the total number of shares applied for and stated that application monies will be banked upon receipt into a designated bank account and held on trust pending the allocation of shares. Required: Assuming all 18 million shares were applied for, prepare the journal entry to record the receipt of application monies. Apart from recording a cash inflow, explain whether Xero should also record another asset, a liability, revenue or an expense upon collection of application monies, and explain why.
Item No. 5 is based on the following information: and no bezod ei S.oM mat 003. 16 Mario Mario Corporation received subscriptions for 400 ordinary shares with a par value of P 20 per share. The subscription price was P 23 per share. 5. What would be the increase in the Subscribed Ordinary Share Capital and Ordinary Share Premium accounts, respectively, as a result of the foregoing transaction? a. PO and P 1,200. b. PO and P 9,200. c. P 8,000 and P 1,200. 219 d. P 9,200 and P O. reflected in the
E14-4 Issuing shares payable by instalments [10–15 min] Riverside Ltd is issuing shares payable by instalments. It completed the following transactions: Received an application for 2000 ordinary shares with a total issue price of $10 per share. The applicant paid one-quarter of the total issue price. Allotted the 2000 shares and collected a further half of the total issue price. Made a call on the shares and collected the balance still due. May 3 May 18 Aug 3 Requirement Record these transactions in the general journal. Explanations aren't required.