Retained Earnings Subscribed Ordinary Shares, 2 000 shares Long-term Notes Payable 5% Preference Shares, P100 par Share Premium-Ordinary Subscriptions Receivable Share Premium-Treasury

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
7. On Dec. 31, 2018, selected accounts from the trial balance of Dimaculangan, Inc. shoed up the
following balances.
Debit
Credit
• Retained Earnings
Subscribed Ordinary Shares,
2 000 shares
P1 550 000
100 000
• Long-term Notes Payable
5% Preference Shares, P100 par
Share Premium-Ordinary
• Subscriptions Receivable
Share Premium-Treasury
• Organization Expense
600 000
1 500 000
1 350 000
P 120 000
280 000
200 000
Share Premium-Preference
850 000
• Ordinary Shares, P50 par
• Donated Capital
Treasury Stock, 450 shares at
2 500 000
590 000
40 000
Cost
Dimaculangan was authorized by its articles of incorporation to issue 500 000 shares of P50 par
ordinary shares and 25 000 shares of P100 par cumulative nonparticipating preference shares.
Note that the subscriptions receivable are collectible next year.
Required: Choose the appropriate shareholders' equity accounts from those listed above
and prepare the shareholders' equity section of Dimaculangan, Inc.'s Dec. 31, 2018
statement of financial position.
Transcribed Image Text:7. On Dec. 31, 2018, selected accounts from the trial balance of Dimaculangan, Inc. shoed up the following balances. Debit Credit • Retained Earnings Subscribed Ordinary Shares, 2 000 shares P1 550 000 100 000 • Long-term Notes Payable 5% Preference Shares, P100 par Share Premium-Ordinary • Subscriptions Receivable Share Premium-Treasury • Organization Expense 600 000 1 500 000 1 350 000 P 120 000 280 000 200 000 Share Premium-Preference 850 000 • Ordinary Shares, P50 par • Donated Capital Treasury Stock, 450 shares at 2 500 000 590 000 40 000 Cost Dimaculangan was authorized by its articles of incorporation to issue 500 000 shares of P50 par ordinary shares and 25 000 shares of P100 par cumulative nonparticipating preference shares. Note that the subscriptions receivable are collectible next year. Required: Choose the appropriate shareholders' equity accounts from those listed above and prepare the shareholders' equity section of Dimaculangan, Inc.'s Dec. 31, 2018 statement of financial position.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for stockholder's equity
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
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education