quityProblem 4: Legal and Contributed CapitalAquinde Corporation has the following accounts in its shareholders equity onFebruary 1, 20x1:Preference share, P100 parOrdinary share, P50 parSubscribed preference shareSubscription receivable - preferenceSubscribed ordinary shareSubscription receivable - ordinaryShare premium - preferenceShare premium - ordinaryRetained earningsTreasury share 5,000 ordinary share at cost2,500,0005,500,0001,500,000800,0002,000,000600,000200,000400,0002,000,000400,000Required: Compute the followingContributed capitalb. Legal capitalTotal shareholders' equitya.C.

Share holders' Equity: It is the statement that provides the movement of the owner's balance from…

Answered: Required: Compute the following a.…

Business

Accounting

Required: Compute the following a. Contributed capital b. Legal capital c. Total shareholders' equity

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: Define shareholders wealth. Explain how it is measured.

A: Shareholder valuation is assigned to a company's investors depending on the company's ability to…

Q: A statement of financial position allows investors to assess all of the following except the___.…

A: Statement of financial position refers to the statement that represents the value of all the assets,…

Q: With illustrations, show how you would interpret Financial statements to the different stake holders…

A: Financial Statements: Income Statement Revenue: $2,000,000 Expenses: $1,500,000 Net Income: $500,000…

Q: What are the financial resources of the company which are also kanown as working capital

A: Financial resources is a term covering all financial funds of an organization. They are part of…

Q: Which of the following statements is correct? Select one: OA. Working capital is the initial capital…

Q: We should report Dividends as:- Select one: a. financing activity-inflow b. financing activity-…

A: Cash flow statement is the summary of inflow and outflows of cash in 3 categories of operating,…

Q: Which of the following describes the purpose of the statement of shareholders' equity? Multiple…

A: Stockholde's equity statement includes issuance of common and preferred stock, Additional paid in…

Q: Explain the following as it relates to Working Capital Management. i) Factoring…

A: Factoring is the process of selling the company account receivables at discount to a third party…

Q: which of the anwsers are operating activities, financing activities, and investing activites for the…

A: In the cash flow statement there are main three segment are there. The details are given below…

Q: Working Capital is a measure used to assess the liquidity of the company, computed as current assets…

A: The Answer is false Refer step2 for explanation

Q: What are the pros and cons of investing into the following assets? Make comparison. a. A unit trust…

A: Unit trust investments invest in a range of individual securities. There will be a systematic risk…

Q: Define each of the following terms:f. Accounting profit; net cash flow; NOPAT; free cash flow;…

A: Accounting profit is the net profit of a firm after deducting a company’s revenue from its expenses.…

Q: 1. Definitions (S9.1-S9.3) Define the following terms: a. Cost of debt. b. Cost of equity. c.…

A: The company raises money through debt and equity and these are sources for long term finance for…

Q: How to Make Reporting for Capital Position According to PSAK?

A: Financial reporting:Financial reporting can be defined as the financial information of organization…

Q: What is equity multiplier ? a) Total Assets /Equity b) Equity / Net Sales c) Total Assets / Net…

A: The equity multiplier is a common ratio which is used in accounting and finance analyses. It is…

Q: When is a statement of shareholders' equity given, what information is included?

A: Statement of shareholders equity is also known as statement of changes in equity. This is a part of…

Q: You find capital in the same side of the balance sheet as liabilites because of ______________.…

A: From the business point of view, capital is also considered as a liability towards the owner…

Q: The factor payment for the use of financial capital (loans and equity investments) is called...…

A: The cost of finance: Equity and debt are two sources of capital for any business. Investors who…

Q: Which of the following are the THREE key areas covered by financial management decisions?…

A: The major three areas covered by financial management decisions are as follow: Investing decision…

Q: Contributions to capital from company's owners are

A: Contributions to capital from a company's owners represent the equity or ownership interest that…

Q: How to determining optimal capital structure?

A: Optimal Capital Structure: It is the best debt and equity mix financing that minimizes the cost of…

Q: What are the distributions to the stockholders by a firm called? A. retained earnings B. net income…

A: Any Company Typically divides the Profits between itself to the company or it's stock holders.…

Q: Net working capital is defined as: Select one: a. Fixed assets minus long-term liabilities. b.…

A: Net working capital is the measure of company's liquidity and short term financial health.

Q: nd the use/s of Stakeholder Analysis. provide (Name, Year) or credits to where credit

A: When it involves any structure project, all of the interior folks and groups United Nations agency…

Q: Debt in the capital structure could be treated as if it were common stock in the weighted average…

A: Debt in the capital structure could be treated as if it were common stock in the weighted average…

Q: What is Owner’s Capital or Equity Financing? Asap

A: Equity financing refers to the practice of raising funds by selling stock. Companies raise funds for…

Q: following heads in the accounti

A: Accounting principle follows the double entry system of recording transactions. To reconcile the…

Q: Problems

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

Q: Which of the following is a usefulness of the statement of financial position? OA. The use of…

A: For every business, accounting is very important for analysis and evaluation. Accounting is based on…

Q: Knowledge Check 01 Which of the following describes how working capital is computed? Multiple Choice…

A: Working Capital is the operating liquidity of the company which is available to business or entity.…

Q: 42. For the ratio Return on Capital Employed, which of the following best describes capital…

A: Return On Capital Employed: Return On Capital Employed is the most widely used ratio to measure the…

Q: wo main ways are relevant to compare an entity's capital at the beginning and end of an accounting…

A: The right answer is option b. i & iv

Q: How is EPS determined for a company with a simple capital structure?

Q: Specify the section of a classified balance sheet in which each of the following accounts would be…

A: 1. Preferred Stock is a stockholder's capital will be shown in the Stockholder's equity section of…

Q: EXPLAIN CAPITAL STRUCTURE WITH EMPHASIS ON COST OF EACH OF THE CAPITAL STRUCTURE COMPONENTS

A: A company's capital structure is the combination of many sources of financing it uses to finance its…

Q: Resources of a company are referred to asa. Liabilities. b. Stockholders’ equity. c. Dividends. d.…

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Question

quity
Problem 4: Legal and Contributed Capital
Aquinde Corporation has the following accounts in its shareholders equity on
February 1, 20x1:
Preference share, P100 par
Ordinary share, P50 par
Subscribed preference share
Subscription receivable - preference
Subscribed ordinary share
Subscription receivable - ordinary
Share premium - preference
Share premium - ordinary
Retained earnings
Treasury share 5,000 ordinary share at cost
2,500,000
5,500,000
1,500,000
800,000
2,000,000
600,000
200,000
400,000
2,000,000
400,000
Required: Compute the following
Contributed capital
b. Legal capital
Total shareholders' equity
a.
C.

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 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Describe about retain earning and paid in capital.
EXAMINE THE IMPOTANCE OF WORKING CAPITAL TO A BUSINESS OR COMPANY (Application of FASB requirements,IFRS and IAS)
Stockholders' equity consists of which of the following? Multiple Choice Paid-in (or contributed) capital and retained earnings. Retained earnings and cash. Long-term assets. Paid-in (or contributed) capital and par value. Premiums and discounts. k
The amounts needed to compute a company's working capital come from which of the following financial statements? Select one:a More than one will be needed b. Balance Sheet c Income Statement d None of the optionse Cashflow statement
Which of the following equations is correct? Multiple Choice Asset Liabilities-Shareholders' Equity Assets + Liabilities Shareholders' Equity Ending Retained Earnings Beginning Retained Earnings-Net Income Dividends Net Income Expenses-Revenues
Estimate the costs of different capital components—debt, preferred stock, retained earnings, and common stock.
Working capital is also referred to as O Paid-in capital O Retained Earnings O Current Assets O Equity
Describe retained earnings and distinguish it from paid-in capital.
Which is NOT a consideration for Cost of Capital?A. Invetsor requirementsB. Size of the CompanyC. All of these are considerationsD. Nature of business
Evaluate the financial analysis of the company's working capital and long term debt.
Out of which equation is NOT CORRECT ? Please remember to select "WHICH IS NOT CORRECT" Select one: a. Capital = Total Assets - Total Liabilities b. Total Assets = Tangible Assets + Intangible Assets + Investments + Current Assets c. Total Liabilities = Total Assets - Shareholder's funds - Capital d. Owner's equity = Share capital + Reserve and Surplus
Capital structure refers to Select one: a. Total assets minus Liabilities b. Shareholders' equity c. Long-term debt, preferred stock, and common stock equity d. Current assets and Current liabilities