EXERCISE I0Red Mama Company 100, 000 shares of P 10 par ordinary shares outstanding. In declaring and distributing a 50%bonus issue, Red Mama initially issued only 45,000 new shares; the other shares were not issued because someinvestors did not own Red Mama shares in even multiples of 2. To these shareholders, Red Mama issued afractional share warrants. Subsequently, 80% of the fractional share warrants were turned in for full shares.REQUIRED:Journalize entries to record the foregoing.

Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Answered: Red Mama Company 100, 000 shares of P…

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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● On January 1, Vermont Corporation had 46,700 shares of $10 par value common stock issued and outstanding. All 46,700 shares had been issued in a prior period at $22 per share. On February 1, Vermont purchased 990 shares of treasury stock for $28 per share and later sold the treasury shares for $20 per share on March 1. The journal entry to record the purchase of the treasury shares on February 1 would include a O debit to Treasury Stock for $27,720. O credit to a gain account for $5,940. O credit to Treasury Stock for $27,720. O debit to a loss account for $5,940.
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? ● .
BFAR Corp. was authorized to issue 300,000 P7 par value ordinary shares. It received subscriptions for 68,000 ordinary shares at P9 per share and collected half of this subscription. How much is the balance of the Subscribed Share Capital account?
A company issued 10,000 shares at OMR 0.80, even though the face value of the share is OMR 1. Pass journal entry for the issue of shares.
What is the balance of the share capital as of year-end?
1. Journal entries for each of the transaction
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: The shares are no-par but have a stated value of P10. The total issue price was P850,000. 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 1. 2. the fair market value of the stock.
What is the journal entry for each date
BCA Company issued 1,000 shares with P 5 par to Atty Bryant as compensation for 1,000 hours of legal services performed Atty Bryant usually bills P 160 per hour for legal services. On the date of issuance, the share had a fair value of P 140. By amount would the share premium account increase as a result of the transaction?*

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