What is the journal entry for the authorization to issue shares?
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What is the journal entry for the authorization to issue shares?
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- Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
- Effective May 1, the shareholders of Baltimore Corporation approved a 2-for-1 split of the companys common stock and an increase in authorized common shares from 100,000 shares (par value 20 per share) to 200,000 shares (par value 10 per share). Baltimores shareholders equity items immediately before issuance of the stock split shares were as follows: What should be the balances in Baltimores Additional Paid-in Capital and Retained Earnings accounts immediately after the stock split is effected?Vishnu Company is authorized to issue 500,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Apr. 10, issued 1,000 shares of stock for legal services valued at $15,000. Journalize the transaction.ABC Co. was organized on January 1, 2019, with an authorization of 1.200.000 ordinary shares with a par value of Rp6 per share. During 2019, the corporation had the capital transactions as provided below. ABC Co. used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of share premium as of December 31, 2019?
- Typecast, Inc. was incorporated on January 2, 2019 with the following authorized capitalization: • 10,000 shares of preference share capital, P 100 par; • 40,000 shares of ordinary share capital, P 40 stated value. During 2019, Typecast issued 24,000 Ordinary shares for a total of P 1,200,000 and 6,000 shares of Preference share capital at P 106 per share. In addition, on December 20, 2019, subscriptions for 2,000 shares of Preference share capital were taken at a subscription price of P 107. These subscribed shares were paid for on January 2, 2020. How much is the total contributed capital as shown in the shareholders’ equity section of the statement of financial position of Typecast, Inc. at the end of 2019? Using data in no. 9, what was the original issue price per share of Ordinary share capital?SHEA Corp. was organized on January 2020. Share capital transactions for the year are shown below: Jan.-5- Authorized to issue 50,000 shares of P10 par value ordinary share. 10-Issued 12,500 shares at P11 per share. Mar.- 25- Issued 500 shares for legal services valued at P6,000. Sept.-30-Issued 2,500 shares for a tract of land valued at P65,000. The journal entry to record the transaction on March 25 includes Select the correct response: O a credit to Share Premium of P6,000 Oa debit to Organization Cost of P6,000 O a credit to Share Capital of P6,000 O a debit to Cash of P6,000 < Previous 3ms 44HzJamaica Corp. organized on June 1,2020, was authorized to issue shares as follows: 9%, 800,000, P100 par, convertible preference shares 2,000,000, P2.50 par value, ordinary shares During the remainder of the fiscal year ended May 31,2021, the following transactions were completed in the order given: 240,000 preference shares were subscribed for at P105, and 720,000 ordinary shares were subscribed for at P26. Both subscriptions were payable 30% upon subscription, the balance in one payment. The second subscription payment was received, except one subscriber for 48,000 ordinary shares defaulted on payment. The full amount paid by this subscriber was returned, and all of the fully paid shares was issued. 120,000 ordinary shares were reacquired by purchase at P28. Each preference share was converted into four ordinary shares. The treasury shares were exchanged for machinery with a fair value market value of P3,440,000. There was a 2 for 1 split and the par value of the new ordinary…
- The following accounts are found in the trial balance of Dawn Corporation as December 31, 2019. Authorized Ordinary share capital, P 100 par P1,000,000; Unissued Ordinary share capital P300,000; Subscribed Ordinary share P200,000; Ordinary share subscription receivable P100,000; Ordinary share premium P70,000. The total number of shares issued is Using data in number 1, the total number of shares still available for subscription isOn January, 2019, Chicosci Corporation was incorporated with authorized Ordinary share capital of P 3,000,000, divided into 100,000 shares with a par value per share of P 30. In February, 30,000 shares were issued for P 40 per share. In July, 20,000 shares were subscribed at a price of P 45 per share. As of December 31, 2019, one half of the subscription has been collected. What amount will appear on the December 31, 2019 Statement of financial position as Ordinary Share Capital?Phoenix Suns Company reported the following shareholders’ equity on January 1, 2019. Ordinary Share Capital - P1,500,000 Ordinary Share Premium - P3,000,000 Retained earnings - P2,000,000 The entity had 400,000authorized shares of P 5 par value, of which 300,000 shares were issued and outstanding. On March 1, 2019, the entity acquired 50,000 shares for P 10 per share to be held as treasury. These shares were originally issued at P 8per share. On December 31, 2019, the entity declared and distributed property dividend with a carrying amount of P 750,000, which is also its fair value. The net income for 2019 was P2,500,000. What amount should be reported as Unappropriated retained earnings on December 31, 2013?Required to answer. Single choice.