FPJ Inc. received subscription for 5,250 Preference Shares at P 10 above par value of P 200 per share. After a down payment of P 125 per share from all the subscribers, how much is the balance of the Subscription
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- BFAR Corp.'s 3,000 preference shares with a par value of P10 per share were subscribed for P18 per share. On the date of subscription, the subscriber paid 30% of the total subscription price. Afterwards, the subscriber paid 10% of the unpaid balance. After numerous attempts of collection, no payment was received from the subscriber and the subscription was declared as delinquent. Interest amounting to P1,305 is charged to the delinquent subscriber. The company had the delinquent subscription auctioned and advertising cost amounted to P9,863. How much should the highest bidder offer to pay?Waterway Corporation had the following shareholders' equity on December 31, 2022: Common shares, 1,280,000 shares authorized, issued and outstanding Contributed surplus (Common Shares) Retained earnings Total shareholders' equity The following transactions occurred, in the order given, during 2023: 1.100 subscriptions were sold for common shares. Each subscription entitled the purchaser to purchase 10 shares in the company at a price of $8 per share. According to the subscription contracts, a payment of $21 per subscription was required at the time the subscriptions were sold. (a) $7,680,000 77,000 11,800,000 $19,557,000 (b) As per the subscription contracts, the second payment was for the balance of the subscription price. Of the 1.100 subscribers, 160 defaulted and did not make this second payment. ENG do %Star Ltd. issued 1,00,000 shares of Rs. 10 each at a premium of Rs. 2 per share, payable as follows : On application Rs. 2.50 per share On allotment Rs. 4.50 (Including premium) On First Call Rs. 2.50 On Final Call Rs. 2.50
- Crane Ltd. offered to sell common shares on a subscription basis. Each subscription allowed for the purchase of 20 shares at a price of $52 per share. Terms of the subscription stated that subscribers were to pay 45% of the price as a down payment, with the remainder due in six months. On June 1, 2023, 180 subscriptions were sold. Six months later, on December 1, only 90 of the subscriptions were fully paid for. According to the subscription contract, the company would retain the down payment on any defaulted subscriptions. (a) Prepare the journal entries to record the above transactions. (List all debit entries before credit entries. 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 o for the amounts.) Date Account Titles and Explanation Debit CreditVirma Corporation sold to a subscriber 500 shares of its P30 par value common stock at P32 per share receiving a 30% down payment. In recording this transaction, A. Ordinary share will be credited in the amount of P15,000 B. Ordinary share will be credited in the amount of P16,000 C. Subscribed share capital will be credited in the amount of P15,000 D. Share premium will be credited in the amount of P4,500 Leon Corporation sold 500 shares of its P40 par value preferred stock for cash at P50 per share. In recording this transaction, there would be a A. Credit to preference share capital for P25,000 B. Credit to preference share capital for P20,000 C. Credit to subscribed preference share capital for P20,000 D. Credit to share capital in excess of stated value for P5,000 Luningning Corporation sold for cash 400 shares of preferred stock with a par value of P50 per share at P56 per share. Also, 600 shares of common stock with no…Apple Corporation was authorized to issue 10,000 preference shares of P200 par value and 100,000 ordinary shares of P20 par value. Subscription for4,000 preference shares was received at P225 per share with a down payment of P25%. The balance is payable after 60 days. What is the amount of Share Premium– Preference recognized by Jungkook upon receipt of the preference sharesubscription?
- EF Ltd. invited applications for issuing 80,000 equity shares of Rs. 50 each at a premium of 20%. The amount was payable as follows : On Application : Rs. 20 per share (including premium Rs. 5) On Allotment: Rs. 15 per share (including premium Rs. 5) On First Call : Rs. 15 per share On Second and Final call : Balance amount Applications for 1,20,000 shares were received. Applications for 20,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Seema, holding 4,000 shares failed to pay the allotment money. Afterwards the first call was made. Seema paid allotment money along with the first call. Sahaj who had applied for 2,500 shares failed to pay the first call money. Sahaj’s shares were forfeited and subsequently reissued to Geeta for Rs. 60 per share, Rs. 50 per share paid up. Final call was not made. Pass necessary journal entries for the above transactions in the books of EF Ltd. by opening calls-in-arrears account.Marco Company issued 1,000 shares with P 5 par to Benn as compensation for 1,000 hours legal services performed. Benn usually bills P160 per hour for legal services. On the date of issuance, the share was trading on a public exchange at 140. By what amount should the share premium account increase as a result of the transaction? Show your solution.The ABC Corporation received subscription for 9,000 ordinary shares at P40/share, where P35 is the par value and received 40% downpayment. A month after 3,600 of said shares were in full while the rest paid an additional P20/share. By the end of the year, 500 of said subscribers were not able to pay and were declared as delinquent. How much would be debited as Receivable from highest bidder?
- Provide complete solution: ABC Company issued 1,000 shares with P5 par to XYZ Company as compensation for 1,000 hours of legal services performed. XYZ Company usually bills P150 per hour for legal services. On the date of issuance, the share was trading on a public exchange at P140. By what amount should the share premium account increase as a result of the transaction? A. P 160,000B. P 145,000C. P 135,000D. P 155,000Item No. 2 is based on the following information: Virma Corporation sold to a subscriber 500 shares of its P 30 par value ordinary shares at P 32 per share receiving a 30% down payment. 2. In recording this transaction: a. Ordinary Share Capital will be credited in the amount of P 15,000. Ordinary Share Capital will be credited in the amount of P 16,000. b. c. Ordinary Share Premium will be credited in the amount of P 4,500. d. Subscribed Ordinary Share Capital will be credited in the amount of P 15,000.X Company made the following transactions: Received subscription of 10,000 preference shares with par value of 45 for 65 per share. Received 25% the next day and 30% after three days. Received subscription of 25,000 ordinary shares with par value of 7.50 for 200,000. received the following payments- 75,000 and 50,000. Required: Compute for the legal capital of each transaction and prepare all journal entries needed to record the transactions above.