Item No. 9 is based on the following information:A corporation's liability (Notes Payable) in the amount of P 100,000 waspaid by issuing its 1,000 no-par value ordinary shares with a stated value of P 90per share. On the date of payment, the shares were selling at P 95 per share.9. The journal entry to record the foregoing transaction would be:1.000- P 100,000a. Notes Payable------ P 100,000Ordinary Share Capitalb. Notes Payable-P 100,000-Ordinary Share CapitalP 95,0005,000Ordinary Share Capital in Excess of Stated Value-c. Notes Payable----- P 100,000Ordinary Share CapitalP 90,000Ordinary Share Capital in Excess of Stated Value ------10,000d. Notes Payable----P 100,000sritOrdinary Share CapitalP 90,000Cash10,000

When liability is repaid the liabilities of company would decrease and since liabilities have credit…

Answered: share. On the date of payment, the…

Principles of Accounting Volume 1

19th Edition

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Author:OpenStax

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Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2TP: Below is select information from two, independent companies. Additional information includes: On...

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On January 1, 20x1, an entity has an outstanding note payable with carrying amount of P1,000,000. On this date, the debtor agrees to receive 10,000 shares of theentity with par value per share of P10 in full settlement of the note payable. The shares are currently selling at P75 per share. Requirements: a. Compute for the gain or loss on the derecognition of the note payable. b. Provide the entry to record the derecognition of the note payable.
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?
The company issued for P1,200,000 cash, 4,000 shares of P200 par value Preference share and 1,000 shares of P100 ordinary share. The preference and ordinary share have fair values of P220 and P120 per share, respectively on the date of sale. Record the transaction above in journal entry form.
Question 4.) A corporation issues 2,500 shares of common stock for P45,000. The stock has stated value of P10 per share . The journal entry to record the stock issuance would include a credit to Share Capital of? A. P20,000 B. P25,000 C. P45,000 D. P5,000
Prepare Journal entries for the following cases. a) To record sale of shares on a subscription basis b) To record collection of down payment c) Collection of share subscriptions receivable d) To record issuance of shares e) To record forfeit of payment from defaulting subscribers
Porter Hardware Pty Ltd issues ordinary shares for $6. Which of the following is true? a. $6 per share is presented on the statement of financial position in the ordinary shares account b. Liabilities will increase as a result of this transaction c. $6 per share is the maximum selling price for these shares d. $6 in dividends will be paid to the shareholders as a result of this transaction
Prior to subscription of Color, the accounting equation of Rado’s corporation is:Asset=Liabilities+Equity P1,000,000 P 250,000 P 750,000 Color subscribed 2,500 shares at P100 par that will be due and collectible 18 months from December 31, 200B, the balance sheet date of Rado. After subscription of Color, the accounting equation of Rado would be Total AssetsTotal LiabilitiesStockholders equity a.P1,250,000P250,000P1,000,000 b.P1,250,000P500,000P 750,000 c.P1,000,000P250,000P 750,000 d.P1,000,000P500,000P 750000
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?*
Ss.227.
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
Rohit Ltd. Purchased assets worth Re. 41,80,000 from Bhuvnesh IndustrialCorporation and issued equity shares of Re. 100 each, fully paid , in satisfaction of the purchase consideration. Pass necessary Journal entries in the books of RohitLtd. Assuming that shares were issued:a.) at par; b.) at a premium of 10%;c.) at a discount of 5%
Question 3.) A corporation issues 2,500 shares of common stock for P45,000. The stock has stated value of P10 per share. The journal entry to record the stock issuance would include a credit to Additional Paid in Capital of? A. P45,000 B. P25.000 C. P20,000 D. P5,000

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share. On the date of payment, the shares were selli The journal entry to record the foregoing transaction would be: