EXERCISE 5The Consuela Enterprises, Inc had the following shareholder's equity balances at December 31,2020:Preference Share Capital, P 20 par, 100, 000 shares authorizedP 2,000,000Ordinary Share Capital, P 30 par, 100, 000 shares authorizedP 1,800,000Share Premium- Preference Share160,000Share Premium- Ordinary Share250,000Retained Earnings800,000REQUIRED:Journalize the retirement of 4,000 preference shares, assuming that the retirement price isa.) P 21 per shareb.) P 26 per share

At the time of retirement of preference shares of the company, the preference share capital and any…

Answered: The Consuela Enterprises, Inc had the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The JHONG Corporation had the following balances in its Shareholders' Equity accounts as of December 31, 2019: Ordinary Share Capital, P10, par, 20,000 shares issued P200,000; Additional Paid In Capital P80,000; Retained Earnings P100,000; Treasury Shares at cost (2,000 shares) P24,000. The following shareholders' equity transactions took place in 2020 and 2021: 1. Dividends declared in 2020 were P22,000 and in 2021 were P 35,000. 2. Sold 1,000 Treasury shares at P15 per share in 2020 and 600 shares at P28 per share in 2021. 3. Issued an additional 1,500 new shares at P18 per share in 2021. 4. Net profit for 2020 was P80,000 and for 2021 was P98,000. How much is the balance of the Treasury Shares account as of December 31, 2021? *
On December 31, 2019, JnT Co. had 2,000,000 shares of ordinary shares standing. On January 1, 2020, JnT Co. issued 500,000 shares of preference shares, which were convertible into 1,000,000 shares of ordinary shares. During 2020, JnT Co. declared and paid P1,500,000 cash dividends on the ordinary shares and P500,000 cash dividends on the preference shares. Net income for 2020 was P 5,000,000.IF income tax rate is 30%, how much is the diluted EPS for the year ended December 31, 2020? * a.) 1.50 b.) 1.67 c.) 2.08 d.) 2.50
On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share capital (P75 par value, 20,000 shares) P 1,500,000 Ordinary share capital (P25 par value, 100,000 shares) 2,500,000 Share premium 3,000,000 Retained earnings 2,250,000 At the beginning of 2021, Heaven Inc sold for cash 20,000 additional ordinary shares for P45 per share. It was discovered late in 2021 that 2020 depreciation expense was overstated by 500,000. Heaven Inc. had a net income of P2,000,000 for 2021. It also declared cash dividend of P500,000 on preference shares and P1,000,000 on its ordinary shares during 2021. What are the effects on the books of Heaven Inc. upon the cash sale of additional ordinary shares? A. Cash will increase by P900,000.B. Cash will increase by P900,000 and ordinary share capital will increase by P900,000.C. Cash will increase by P900,000, ordinary share capital will increase by P500,000 and share premium will increase P400,000.D. Cash will increase by…
The balance sheet of Chunn Industries included the following shareholders’ equity section at December 31, 2018 ($ in millions): Common stock ($1 par value, authorized 100M shares, issued and outstanding 90M shares) $ 90 Paid-in capital—excess of par 540 Retained earnings 280 Total shareholders’ equity $910 On January 5, 2019, Chunn purchased and retired 1 million shares for $9 million. Immediately after the purchase of the shares, the balances in the paid-in capital—excess of par and retained earnings accounts are:
The shareholders’ equity section of Pottery Corporation’s statement of financial position as of December 31, 2019, is as follows: Ordinary shares, P10, par value; authorized, 2,000,000 shares; issued 400,000 shares P4,000,000 Share premium 1,700,000 Accumulated profits 6,000,000 Total P11,700,000 The following transactions occurred during 2020: Jan. 5 10,000 shares of authorized and unissed ordinary shares were sold P17 per share. The company incurred share issue cost at P1 per share. Jan. 16 Declared a cash dividends of P1 per share, payable February 15 to shareholders of record February 5. Feb. 20 Reacquired 50,000 shares as treasury shares at P20 per share. Feb. 25 20,000 shares of authorized and unissued ordinary shares were issued in exchange of an equipment having a fair market value of P500,000. The company incurred share issue costs at P20,000. Mar. 1 A 30% stock dividend was declared and issued. Market value of…
On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share capital (P75 par value, 20,000 shares) P 1,500,000 Ordinary share capital (P25 par value, 100,000 shares) 2,500,000 Share premium 3,000,000 Retained earnings 2,250,000 At the beginning of 2021, Heaven Inc sold for cash 20,000 additional ordinary shares for P45 per share. It was discovered late in 2021 that 2020 depreciation expense was overstated by 500,000. Heaven Inc. had a net income of P2,000,000 for 2021. It also declared cash dividend of P500,000 on preference shares and P1,000,000 on its ordinary shares during 2021. What amount should be reported as retained earnings on December 31, 2021? A. 2,500,000B. 2,750,000C. 3,250,000D. 4,750,000
On May 1, 2020, ABC Corporation, a newly formed company had the following share capital issued and outstanding:· Ordinary share capital, P10 par, 20,000 shares originally issued for P30 per share. · Preference share capital, P100 par, 600 shares originally issued for P 500 per share. 21. What is the amount of Ordinary share capital that ABC Corporation should report in its May 1, 2020 statement of shareholder’s equity? a. 60,000 b. 200,000 c. 400,000 d. 640,000 22. Based on Item 21, what is the amount of Preference share capital that ABC Corporation should report in its May 1, 2020 statement of shareholder’s equity? a. 60,000 b. 200,000 c. 400,000 d. 640,000 23. Based on Item 21, what is the amount of additional paid in capital that ABC Corporation should report in its May 1, 2020 statement of shareholder’s equity? a. 200,000 b. 240,000 c. 400,000 d. 640,000 24. Based on Item 21, what is the amount of contributed…
Pat Company reported the following information on December 31, 2020. Determine the legal capital: * P230 000 80 500 525.000 275,000 5.000 Preference Share, P100 par Share Premium - Preference Ordinary Share, P15 par Share Premium- Ordinary Subscribed Ordinary Share Retained Earnings Notes Payable Subscription receivable- Ordinary 190,000 400,000 40,000 Your answer This is a required question
summer provided the following shareholders’ equity on December 31, 2021: Preference share capital, 10% P50 par (noncumulative and participating) 1,000,000 Preference share capital, 8% P50 par (cumulative and participating) 1,500,000 Ordinary share capital, P100 2,500,000 Share premium 500,000 Retained earnings 600,000 Dividends have been paid on the preference share up to December 31, 2018. Book value per 8% preference share
Amaya Company offered existing shareholders a rights issue of one for 5 shares at a price ofP6 per share to be exercised on April 1, 2020. The market value of share was P12 on thatdate.On January 1, 2019, there are 810,000 ordinary shares outstanding.The entity reported net income P2,250,000 for 2019 and P3,500,000 for 2020.Required: Compute the basic earnings per share for 2019 and 2020.
The stockholders equity section of K Pop Corp balance sheet at December 31, 2019 was as follows: Ordinary shares P10 par authorized 1,000,000 shares, issue and Outstanding 900,000) P9,000,000 Share premium 2,700,000 Retained Earnings 1,300,000 On Jan 2, 2020 K Pop purchased and retired 100,000 shares of the stocks for P1,800,000. Immediately after retirement of these 100,000 shares, balances of the share premium and retained earnings account respectively should be :
The stockholders/ equity section of Glavine Company revealed the following information on December 31, 2019: Preference share, P100 par 1,150,000 Premium on share capital - Preference share 402,500 Ordinary share, P15 par 2,620,000 Premium on share capital - Ordinary share 1,375,000 Subscribed ordinary share 250,000 Retained earnings 950,000 Note payable 2,000,000 Subscriptions receivable - Ordinary share…

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS