Prepare the Shareholders' Equity section of the Statement of Financial Position of New Era Corporation as of December 31,20A. 10% Preference Shares at P50 par value, authorized to issue 10,000 shares and issued 6,000 shares Ordinary Shares at P75 par value, authorized to issue 5,000 shares and issued 4,000 shares of which 100 shares are in the treasury P300,000 300,000 Share Premium: Preference Ordinary Subscribed Preference Share Subscription Receivable – Preference Subscribed Ordinary Share Subscription Receivable - Ordinary Accumulated Profits and Losses 4,000 8,000 100,000 60,000 37,500 10,000 520,000 Revaluation Increment on Property Treasury Shares at Cost 30,000 8,000

Prepare the Shareholders' Equity section of the Statement of Financial Position of New Era Corporation as of December 31,20A. 10% Preference Shares at P50 par value, authorized to issue 10,000 shares and issued 6,000 shares Ordinary Shares at P75 par value, authorized to issue 5,000 shares and issued 4,000 shares of which 100 shares are in the treasury P300,000 300,000 Share Premium: Preference Ordinary Subscribed Preference Share Subscription Receivable – Preference Subscribed Ordinary Share Subscription Receivable - Ordinary Accumulated Profits and Losses 4,000 8,000 100,000 60,000 37,500 10,000 520,000 Revaluation Increment on Property Treasury Shares at Cost 30,000 8,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...

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Contributed 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.
Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.
Problem 1. The following data refers to the Shareholders' Equity section of Beleleng Corporation at 31 December 20A. 1. Preference share, authorized to issue 5,000 shares at P50 par value per share. Issued shares - 3,000 P150,000 2. Share Premium - Ordinary shares 3. Ordinary Share - Authorized to issue 10,000 shares at 5,000 P100 par value per share. Issued shares - 7,000 700,000 2,000 400,000 4. Share Premium - Preference shares 5. Accumulated Profits and Losses Accumulated Profits and Losses, Jan. 1, 20A Net Profit for the year P150,000 250,000 6. Other components of Equity: Revaluation Increment on Property 10,000 Required: 1. Shareholders' Equity as of December 31, 20A 2. Statement of Changes in Equity for the year ended December 31, 20A
Prepare the shar (b) financial position at Decen to shareholders' equity 1. The following information relates Preference Share Capital, 12%, P50 par cumulative, 10,000 shares authorized Ordinary Share Capital, P1 stated value, 2,000,000 shares authorized Share Premium - Preference Paid in Capital in Excess of Stated Value Retained Earnings P 400,000 1,000,000 80,000 1,400,000 1,816,000 40,000 Treasury Shares - Ordinary (10,000 shares) During 2018, the corporation had the following transactions and events pertaining to its shareholders' equity: Issued 20,000 ordinary shares for P100,000 Sold 6,000 treasury shares for P28,000. Issued 5,000 shares of ordinary share capital for a piece of equipment with cash price of P25,000. Purchased 1,000 shares of ordinary for the treasury at a cost of P6,000. Declared the annual dividend on preference share and PO.20 cash dividend on ordinary share. Determined that profit for the year was P377,000 Feb. 1 Apr. 30 Sept. 1 Nov. 2 Dec. 31 31 31 The fair…
4 An entity provided the following data for the current year: Net Income – P 4,000,000 Ordinary shares – 250,000 Share Option (exercise price of P 60), issued on February 1 (Average Market Price, P 75)– 48,000 5% Preference share capital, P100 par, convertible and cumulative, issued on March 1, can be converted into 18,000 ordinary shares (dividends paid on June) – P 3,600,000 12% Bonds Payable, issued on May 1, can be converted into 30,000 ordinary shares– P 3,000,000 Income Tax Rate – 30% How much is the incremental EPS of convertible bonds payable? (round-off to nearest centavo)
1. At December 31, the Shareholders’ Equity section shows: Ordinary Share, P 5 par, value 1,320,000 shares issued P 6,600,000 Share Premium-Ordinary P1,400,000 Retained Earnings P 500,000 Treasury Shares, at cost, 120,000 shares P 700,000The book value per share of Ordinary Share is: a. P5.91 b. P6.44 c. P6.50 d. P7.082. Tiktok Company issued 10,000 shares of its P5 Par value common stock having market value of P25 per share and 15,000 shares of its P15 par value preferred stock having a market value of P20 per share for a lump sum of P480,000. How much of the proceeds would be allocated to the common stock? a. P250,000 b. P255,000 c. P218,182 d. P50,000
9. The following data pertain to BUENO Corporation: Redeemable Preference Share Capital, P100 par; 5,000 shares issued and outstanding Preference Share Premium Retained Earnings P500,000 50,000 100,000 June 5 Redeemed and retired 500 preference shares at P150 per share. 30 Redeemed and retired 500 preference shares at P90. Direction: a) Journal entries b) Prepare the shareholders' Equity Section as of June 30.
Problem 2 On January 1, 2021, the shareholders' equity section of Bamboo Corporation's statement of financial position disclosed the following information: 12.5% convertible preference shares (P40 par value; 150,000 shares authorized, 60,000 shares issued and outstanding) Ordinary shares (P5 par value; 600,000 shares authorized, 360,000 shares issued and outstanding). Share premium.. Retained earnings. Total shareholders' equity. 2.400,000.00 .1,800,000.00 .9,000,000.00 13,500,000.00 26,700,000.00 The following equity transactions occurred during 2021 and 2022: On February 1, 2021, 45,000 ordinary shares were acquired by the company for P33 per share. On August 30, 2021, 15,000 preference shares were converted to ordinary shares. One (1) preference share is convertible into one (1) ordinary share. At the time of conversion, the ordinary shares had a market value of P42 per share. On December 12, 2021, the company placed a share subscription of 30,000 ordinary shares at a subscription…
AB Co issues 5.000 50c shares for $6.000. Required: What are the amounts for share capital and share premium in the statement of financial position?
The shareholders' equity section of PRAY Corp. on December 31, 20x1 appeared as follows: Preference share, P50 par. 250.000 shares authorized, share issued Ordinary share. P20 par, 500,000 shares authorized share issued and shares outstanding 2,000,000 Share premium - preference share 250.000 Share premium - ordinary 200,000 Retained earnings 2.500,000 Treasury shares 50,000 Total Shareholders Equity HOW MUCH IS THE UNAPPROPRIATED RETAINED EARNINGS?
The shareholders' equity of Diamond Corporation on December 31, 2021 follows: Ordinary Share Capital P20 par, 100,000 shares issued P2,000,000 8% Preference Share Capital P50 par, 10,000 shares issued 500,000 Share Premium - Ordinary 200,000 Share Premium - Preference 50,000 Retained Earnings 1,500,000 Total 4,250,000 Compute for the book value per share on preference and ordinary share under each of the following assumptions: a. Preference shares have liquidation value of P60 per share, no dividends in arrears b. Preference shares are cumulative with dividends in arrears for 3 years including the current year, Upon corporate liquidation, shares are preferred as to assets up to par and any dividends in arrears must be paid first before distribution may be made to ordinary shares.
Problem 7-6 (IAA) Kareń Company showed the following accounts on December 31, 2020. 5,000,000 250,000 Bonds payable Premium on bonds payable Share capital – 250,000 shares authorized and 200,000 shares issued, P50 par Share premium -issuance Share premium - conversion privilege Retained earnings 10,000,000 2,000,000 500,000 2,500,000 The bonds are convertible into 10 shares of capital for every P1,000 bond. On December 31, 2020, the entire bond issue was converted and on this date, the market value of the share is 120 and the market value of the bonds is 103. The entity paid P200,000 as a result of the bond conversion. Required: Prepare journal entries for the conversion of the bonds on December 31, 2020.