Atty Jani ed that the corporation has an authorized ordinary share capital or P10,000,000 with an equivalent share of 50,000 Mendragon Carporation is to issue 250 shares at par value for the service of the lawyer. Alcantara has done a lot in the forming of Mondragon Corporation. The Articies of Incorporation Record the following transactions assuming: 1. The services of Atty. Alcantara is valued at P60,000. Description P.R. Debit Credit 2 No known value of the services instead the fair value of ordinary share is given at P250 per share. Description P.R. Debit Credit 3. There is no known value for both services rendered and the ordinary share capital issued. Description P.R. Debit Credit

Atty Jani ed that the corporation has an authorized ordinary share capital or P10,000,000 with an equivalent share of 50,000 Mendragon Carporation is to issue 250 shares at par value for the service of the lawyer. Alcantara has done a lot in the forming of Mondragon Corporation. The Articies of Incorporation Record the following transactions assuming: 1. The services of Atty. Alcantara is valued at P60,000. Description P.R. Debit Credit 2 No known value of the services instead the fair value of ordinary share is given at P250 per share. Description P.R. Debit Credit 3. There is no known value for both services rendered and the ordinary share capital issued. Description P.R. Debit Credit

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

During the incorporation of J Inc., it issued 1,000 shares at Php205/share, par value is at Php180/share Stock issue costs amounted to Php30,000 was paid in the process. Also, the Inc. issued 500 shares to attorneys for services in securing the corporate charter and for preliminary legal cost of organizing the corporation with the fair value of the 100,000 for the service. What is the journal entry of the following (a) Stock issuance (b) Stock Issue Cost (c) Organizational cost
Alanae Inc issues 500 common shares to the organizers of its corporation to pay for their services valued at $5,000. What is included in the journal entry to record this transaction? O a. O b. C. O d. A debit to an asset account A credit to an expense account A credit to a liability account A credit to an equity account
The December 31, 2020 condensed Statement of Financial Position of ALL STAR Entertainment Services, a sole proprietorship of RATTLETRAP follows: Current Assets P 1400,000 Property, Plant and Equipment -net 1300.000 P 2200 000 Liabilities P. 700,000 RATTLETRAP. Capital 2.000 000 2.700 000 On January 15, 2020, ALL STAR Entertainment Services was incorporated with 10,000 shares of P100 par value common shares issued. Prior to incorporation, Mr. RATTLETRAP had determined the following fair market values Current Assets P 1,600,000 Property. Plant and Equipment 2,100,000 Liabilities 700,000 What amount should be credited to Share Premium? P.
J Company is authorized to issue 5,000,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Mar. 1, issued 4,000 shares of stock in exchange for equipment worth $250,000. What account and amount would be included in the journal entry?
Oriole Inc. (OI) is a backyard pond design and installation company. Ol was incorporated during 2023, with an unlimited number of common shares, and 42,000 preferred shares with a $3 dividend rate authorized. Ol follows ASPE. The following transactions took place during the first year of operations with respect to these shares: Jan. 1 Jan. 15 Feb. 20 Mar. 3 May 10 Sept. 23 Nov. 28 Dec. 31 The articles of incorporation were filed and state that an unlimited number of common shares and 42,000 preferred shares are authorized. Dec. 31 25,200 common shares were sold by subscription to 3 individuals, who each purchased 8,400 shares for $42 per share. The terms require 8% of the balance to be paid in cash immediately. The balance was to be paid by December 31, 2024, at which time the shares will be issued. 58,800 common shares were sold by subscription to 7 individuals, who each purchased 8,400 shares for $42 per share. The terms require that 8% of the balance be paid in cash immediately,…
Irene received the following dividends in 2021: • an eligible dividend of $16,550 •a non-eligible dividend of $12,450 •a dividend of $21,975 from a foreign corporation, net of $3300 of foreign tax withheld •a stock dividend of 444 shares; the paid-up capital of the corporation was increased by $25 for each share issued, and the issuing company is a public company Irene has a combined federal and provincial tax rate of 45%. Required: Indicate total after-tax amount received by Irene in 2021. For each investment you should identify the total cash received, the taxable amount, the taxes, any related dividend tax credits (if applicable), and total cash (after- tax). Use a chart to help organize your calculations.
The Business charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: VIK purchased a piece of land from the original owner. In payment for the land, VIK issue 350,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of 1, 350,000 The company sold 110,000 shares of common stock with $1 par value Issued 22,000 shares of $18 par value preferred stock. Shares were issued at par. Earned net income of $850,000 Dividend declared and paid - $0.15 per share on common stock Dividend declared and paid - $5 per share on preferred stock Prepare the Journal entries closing entries for the above transaction
Susan Casulla, Margie Landicho and Christine Supapo decided to incorporate their business and invited Irene Beltran and Eleanor Eno to join with them. The partnership shall transfer all assets and liabilities to the corporation. Irene Beltran and Eleanor Eno will purchase 250 each of the corporation’s ordinary share. The corporation is authorized to issue 5,000 shares at P50.00 par value per share. The post-closing trial balance after adjustments in preparation for incorporation follows: Yummy Cakes and Pastries Post-closing Trial Balance September 30, 20A Debit Credit Cash 40,000 Merchandise Inventory 70,000 Furniture and Equipment 100,000 Accumulated Depreciation 20,000 Accounts Payable…
On the date of incorporation, the condensed balance sheet of Alom Partnership showed the following: Cash P 28,000Other Assets 256,000Liabilities 50,000Alpha Capital 180,000Omega Capital 54,000 The Securities and Exchange Commission authorized the corporation to issue the following shares: o 10,000 shares of 12% Preference Share Capital, par P 100; ando 20,000 shares of Ordinary Share Capital, par P 50. The corporation issued 1,500 preference shares and 800 ordinary shares to Alpha in exchange for her equity in the partnership. On the other hand, Omega received 1,500 preference shares and 1,200 ordinary shares for her equity in the partnership. Any capital deficiency of the partners will be paid in cash. Three other incorporators each subscribed at par, 1,500 preference shares and 2,000 ordinary shares paying only 25% of their subscriptions and the balance payable in two months from the date of subscription.…
On the date of incorporation, the condensed balance sheet of Alom Partnership showed the following: Cash P 28,000Other Assets 256,000Liabilities 50,000Alpha Capital 180,000Omega Capital 54,000 The Securities and Exchange Commission authorized the corporation to issue the following shares: o 10,000 shares of 12% Preference Share Capital, par P 100; ando 20,000 shares of Ordinary Share Capital, par P 50. The corporation issued 1,500 preference shares and 800 ordinary shares to Alpha in exchange for her equity in the partnership. On the other hand, Omega received 1,500 preference shares and 1,200 ordinary shares for her equity in the partnership. Any capital deficiency of the partners will be paid in cash. Three other incorporators each subscribed at par, 1,500 preference shares and 2,000 ordinary shares paying only 25% of their subscriptions and the balance payable in two months from the date of subscription. Refer to…
Ayayai Corporation purchased a 20% interest in Moss Inc. for $300. This investment gave Ayayai significant influence over Moss. During the year, Moss earned net income of $15 and paid dividends of $5. Assuming the purchase price was equal to 20% of Moss’s net carrying amount when it was acquired.Prepare Ayayai’s journal entries related to this investment using the equity method. Ayayai applies IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit enter an account title to record investment purchase enter a debit amount enter a credit amount enter an account title to record investment purchase enter a debit amount enter a credit amount (To record investment purchase) enter an account title to record investment income enter a debit amount enter a credit…
ABC Company has 100,000 authorized number of common stock, which 80,000 shares were issued and outstanding. The company issues 20,000 additional shares to other people, Mr. Abad’s ownership in the company is 5,000 shares. How much share should he be allowed to buy under the pre-emptive right to maintain his ownership interest in the company? a.1,000 b. 1,250 c. 5,000 d. 4,000