On July 1, 2018, Alaska Corp. issued 6,000 shares of its P 100 par ordinary share to Atty. Black as compensation for 1,000 hours of legal services performed during incorporation. Atty. Black usually bills P 500 per hour for legal services. On this date of issuance, the share was selling at a public trading at P 150 per share. By what amount should the Share Premium account of Alaska Corp. increase as a result of the issuance of those shares?
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On July 1, 2018, Alaska Corp. issued 6,000 shares of its P 100 par ordinary share to Atty. Black as compensation for 1,000 hours of legal services performed during incorporation. Atty. Black usually bills P 500 per hour for legal services. On this date of issuance, the share was selling at a public trading at P 150 per share. By what amount should the Share Premium account of Alaska Corp. increase as a result of the issuance of those shares?
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- On January 2, 2019, Brust Corporation grants its new CFO 2,000 restricted share units. Each of the time-vested restricted share units entitles the CFO to receive one share of Brust common stock if she remains an employee of the company for 4 years. On January 2, 2019, shares of Brusts 1 par value common are trading at 29.50 per share. The company estimates that the CFO will complete all 4 years of required service with the company. Prepare the journal that Brust should make each year to account for the restricted share units.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. 3,370,000In 2021, XYZ Corporation, acquired 3,000 shares of its P20 par value ordinary share capital at P72 per share. During 2021, XYZ issued 1,500 of these shares at P100 per share. What amount should XYZ credit as Additional paid in capital in 2021 to record the issuance of the 1,500 shares?
- On January 1, 2018 Weins Inc. granted 100,000 stock appreciation rights (SARs) to its executives. (Weins Inc uses IFRS) Each SAR entitled its holder to receive cash equal to the difference between the market price of the common share and the benchmark price of $12. The SARs vested after two years and expired on Dec. 31, 2021. On January 1, 2020, 10,000 SARs are exercised. The market price of the shares remained at $22. On January 1, 2021, 50,000 SARS are exercised. The market price of the shares remained at $15 The remaining SARs expired on December 31, 2021 Pertinent stock-related data are listed below: Date Fair value each SAR Market price of share 1-Jan-18 $11 31-Dec-18 $7 $15 31-Dec-19 $6 $14 31-Dec-20 $8 $22 31-Dec-21 $5 $15 Required: Prepare journal entries for the following: December 31, 2018, to record compensation expense. December 31, 2019, to record compensation expense. December 31, 2020, to record compensation expense.…On June 1, 2024, Blue Company distributed to its common stockholders 140,000 outstanding common shares of its investment in Red Incorporated which is an unrelated party. The book value on Blue’s books of Red's $1 par common stock was $1.40 per share. Immediately after the declaration, the market price of Red's stock was $2.90 per share. In its income statement for the year ended June 30, 2024, what amount should Blue report as gain before income taxes on disposal of the stock?On January 1, 2022, Maris Company issued share appreciation rights to its president exercisable for one year beginning January 1, 2024 provided that the president is still in the employ of the company at that date of exercise. Each right provides for a cash payment equal to the excess of the entity’s share price over P50. The equivalent number of shares for share appreciation rights will be based on the level of sales at the date of exercise. The number of equivalent shares is 20,000 if the level of sales is P4,000,000 to P6,000,000 and 30,000 shares if the level of sales is over P6,000,000. The actual sales achieved totaled P5,000,000 in 2022 and P7,000,000 in 2023. The share prices are P90 in 2022 and P85 in 2023. What amount should be reported as compensation expense for 2023? 250,000 650,000 525,000 850,000
- C. On March 1, 2018, Plain, Inc. sold 40,000 shares of its P 30 par value Ordinary Share Capital on a subscription basis at P 50 per share. The corporation received a 30% down payment on the date of subscription. On March 10, 2018, the corporation collected the balance of the subscription and issued the certificates. Required: Prepare the journal entries to record above transactions.On July 1, 2020, Phoenix company offers to issue their accountant 800 common shares at their current market value of $12 per share, to equal the fair value of $9,600. The accountant accepts the offer of shares in exchange for accounting services. Record the journal entry for the issuance of shares. Select one: a. Debit Cash $9,600, Credit Common Shares $9,600 b. Debit Accounting Fees Expense $9,600, Credit Cash $9,600 c. Debit Accounting Fees Expense $9,600, Credit Common Shares $9,600 d. Debit Cash $9,600, Credit Service Revenue $9,600On December 31, 2020, ABC Co. was registered at SEC with 100,000 authorized ordinary shares of P100 par value. On the same date, 40,000 were sold and issued at P105 per share. On May 15, 2021, the corporation purchased 600 shares of its ordinary share capital at P110 per share. On September 16, 2021, 400 treasury shares were sold at P95. During 2021, the corporation realized an income after tax of P830,000 and paid cash dividend of P200,000. What is the total shareholders’ equity of ABC Co. on Dec. 31, 2021?
- The Nonono Corporation is authorized to issue 100,000 ordinary shares, P17 par value. At the beginning of 2021, 18,000 ordinary shares were issued and outstanding. These shares had been issued at P24. During 2021, the company entered into the following transactions:Jan. 16 Issued 1,300 ordinary shares at P25 per share.Mar. 21 Exchanged 12,000 ordinary shares for a building. The shares were selling at P27 per share.May 7 Reacquired 500 ordinary shares at P26 per share to be held in treasury.July 1 Accepted subscriptions to 1,000 ordinary shares at P28 per share. The contract called for 10% down payment with the balance due on December 1.Sep. 20 Sold 500 treasury shares at P29 per share.Dec. 1 Collected the balance due on the July 1 subscriptions and issued the shares. 1. What is the total share premium as of December 31, 2021? 2. The total contributed capital on December 31, 2021 is 3. The total legal capital on December 31, 2021 is:On 2, 2019, I AM DETERMINED CO. purchased 10,000 shares of CPA CO. at P56 plus broker’s commission of P4 per share. The investment is FVTOCI. During 2018 and 2020, the following events occurred regarding the investment: 12/15/19 CPA CO. declares and pays a P2.20 per share dividend 12/31/19 The market price of CPA CO. stock is P52 per share at year-end 12/01/20 CPA CO. declares and pays a dividend of P2 per share 12/31/20 The market price of CPA CO. stock is P55 per share at year-end The net unrealized loss at December 31, 2020 in accumulated OCI in shareholders' equity isABC 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?