The following information was discovered during an audit, before the books of Sorima- Corporation were closed for 2019: 1. No record had been made of a 50% share dividend declared and issued in June 2019. Prior to the share dividend, the corporation had 200,000 shares of P10 par value ordinary shares outstanding. The stock was selling for P21 per share when the share dividend was declared. 2. On Sept. 1, 2019, the corporation purchased 1,000 shares of its own ordinary shares for P24 a share and included the stock with its trading investments. On Oct. 1, 2019, it sold 500 of these shares for P25 per share. 3. In November, 2,000 shares of P100 par value convertible preference shares, which had originally been issued at par, were converted to ordinary shares. Each share of preference shares was convertible into four shares of ordinary shares. 4. On Dec. 30, 2019, Sorima Corporation declared a P1 per share cash dividend on ordinary shares. Since the dividend was not to be paid until Jan. 15, 2020, no entry was made.

The following information was discovered during an audit, before the books of Sorima- Corporation were closed for 2019: 1. No record had been made of a 50% share dividend declared and issued in June 2019. Prior to the share dividend, the corporation had 200,000 shares of P10 par value ordinary shares outstanding. The stock was selling for P21 per share when the share dividend was declared. 2. On Sept. 1, 2019, the corporation purchased 1,000 shares of its own ordinary shares for P24 a share and included the stock with its trading investments. On Oct. 1, 2019, it sold 500 of these shares for P25 per share. 3. In November, 2,000 shares of P100 par value convertible preference shares, which had originally been issued at par, were converted to ordinary shares. Each share of preference shares was convertible into four shares of ordinary shares. 4. On Dec. 30, 2019, Sorima Corporation declared a P1 per share cash dividend on ordinary shares. Since the dividend was not to be paid until Jan. 15, 2020, no entry was made.

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

create a journal entry in the proper format
Explain Counting and Record Keeping?
How to make t account and journal entry. Please use only these numbers when answering the questions please
1. What are the different BIR forms and describe and identify the deadline for submission of each form. Explain all please, don't answer short and don't plagiarize please, thank you
Differentiate closing entries, reversing entries, opening entries and correcting entry.
What does the QuickBooks Online Check Register do?
1. When would you choose to give a refund after creating a Credit Memo? 2. When would you choose to retain an available credit after creating a Credit Memo?
Describe how to close entries properly.
True or false? In a manual system, it is proper to splits journal entry at the bottom page.
Q1: Write an e-mail to technical support team of your college to retrieve your login credentials. In order to make your e- mail effective mention all the important details and reasons to prioritize your response
Select the best answer for the question 13. The process of transferring the information contained in the journal to the ledger is called A. cross-referencing OB. balancing the accounts OC. cross-adding D. posting. Mark for review (Will be highlighted on the review page) << Previous Question Next Quesmon
What is the purpose of posting J.F numbers that are entered in the journal at the time entries are posted to the accounts.