shares of ordinary share capital. Subsequently, 250,000 shares were issued at P25 per The Security Corporation was organized on May 1, 2014 and is authorized to issue 500,000 Exercise 8 - 3 (Issuance of Various Classes of Share Capital for Cash) share. Iastructions: Prepare the journal entries to record authorized share capital and the issuance the 250,000 shares using the memorandum entry method under each of the following independent assumptions: 1. Each ordinary share has a par value of P20. 2. Each ordinary share has a stated value of P15. 3. The ordinary shares have no par and no stated value.
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- Exercise 6-5 (Journalizing Share Capital Transactions) The BCD Corporation was organized on January 2, 2021 with authorized capital of 500,000 shares of P20 par value ordinary share capital. During the first two years, the following transactions took place: 2021 Jan Issued 125,000 shares to the incorporators at P26. 2 Issued 62,500 shares at P35. 2 Ma Ma Issued 25,000 in exchange for land valued at P350,000 and a building valued at P550,000. De 3 The Income Summary account showed a credit balance of P750,000 and this was transferred to the Retained Eamings account. 3 Declared cash dividends of P3.50 per share payable on January 31, 2022 to shareholders of record of January 15, 2022. 2022 Jan 3 Paid dividends declared on December 31. Fe b Ma Received subscriptions for 50,000 shares at P55, with a down payment of 35% 4 1 of total subscriptions. Received balance due on the subscription of February 14 and shares were issued to the subscribers. De 3 The Income Summary account showed a…A. The Banco de Plata was organized on April 1, 2018 and is authorized to issue 250,000 shares of Ordinary Share Capital. Thereafter, 62,500 shares were issued at P 25 per share. Prepare the journal entries to record the authorization of the share capital and the issuance of the 62,500 shares using the memorandum entry method and the journal entry method under of the following independent cases: a) Each ordinary share has a par value of P 20 b) Each ordinary share has a stated value of P 15 c) Each ordinary share have a no par value and no stated valueExercise 8 -2 (Issuance of Par Value Share Capital for Cash, Services, and Non-cod Assets) The Honesty Corporation was organized on April 1, 2014 with authorized share capital 500,000 ordinary shares, par value of P20. Thereafter, the following transactions tod place: April 1 The incorporators acquired 200,000 shares at P36 per share. 25 Issued 5,000 shares for the services rendered by the lawyer during the perid of incorporation. The fair value of such services is P150,000. In al Мay 28 Issued 15,000 shares in exchange for equipment valued at P400,000. Instructions: Prepare journal entries to record authorized share capital and the subsequet transactions assuming the corporation uses the: a. memorandum entry method b. journal entry method
- Problem no. 1 ABC Corporation has the following transactions throughout the year of 2020: Jan ABC Corporation received its certificate of incorporation from Securities and Exchange Commission. From its submitted Articles of Incorporation, the corporation has a total of authorized share capital of PI0,000,000.00 divided into 1,000,000 ordinary shares with par value of P10.00. Out of the total authorized share capital, 30% has been fully paid and issued at P11.00 per share to incorporators. The company incurred P120,000 directly related to the issuance of shares. Feb 2 Mr. Z, an investor, subscribed 20,000 shares at a subscription price of P15.00. ABC has collected 20% of the total subscription price and remaining balance payable within 10 days. 5 ABC issued 140,000 shares at P17.00 per share. ABC issued 40,000 shares in exchange for equipment. The fair value of the shares is P11.00 and the fair value of the equipment is P480,000. 28 ABC issued 30,000 shares for payment of legal…Q. On August 1, 2018, Queen Corporation, a newly formed company had the following shares issued and outstanding: Preference Shares, P 50 par, 12,000 shares originally issued at P 65 Ordinary Shares, P 20 par, 25,000 shares originally issued at P 35 How should Queen shareholders' equity report the following? 1) Preference Share Capital 2) Ordinary Share Capital 3) Total Additional Paid in Capital 4) Total Contributed Capitalh. 2. What amount should be reported as básic EPS for 2021 Problem 19-16 (AICPA Adapted) 10 fo Strauch Company had one class of share capital outstanding and no other securities that are potentially convertible into ordinary shares. During 2021, 120,000 shares were outstanding. a. b. On April 1, 2022, 40,000 shares of treasury were sold, and on July 1, 2022, a 2-for-1 share split was issued. C. d. Net income was P6,000,000 in 2022 and P3,600,000 in 2021. Pr 1. What amount should be reported as basic EPS for 2022 Du 20 sh. in the 2022 comparative income statement? a. 25.00 b. 20.00 c. 18.75 d. 37.50 P3 pa WE in the 2022 comparative income statement? a. a. 30,00 b. 15.00 C. 45.00 d. 22.50 b. C. d. 602
- 1. The following list of balances appears, amongst others, in the accounting records ofVanDerZon Ltd on 31 December 2020:ROrdinary share capital (shares issued at R0,50 each) 5 000 000Proceeds of 1 500 000 ordinary shares issued on 31 October 2020 1 125 000The following decision that must still be recorded was ratified by the directors, on31 December 2020:Capitalisation shares must be issued to the ordinary shareholders that are registered in theshare register on 31 December 2020, in the ratio of one ordinary share for every fiveordinary shares held at R0,65 per share.Which one of the following options represents the Rand-value of the shares that must becapitalised?1. R520 0002. R1 150 0003. R1 495 0004. R2 550 0002. Purco Ltd underwrites 65% of an issue of 750 000 ordinary shares at R15 each inKarce Ltd. The underwriting commission is 7,5% and the public takes up 680 000 shares.Which one of the following amounts will be the liability of the underwriter?1. R682 5002. R850 0003. R1 050…Problem no. 1 ABC Corporation has the following transactions throughout the year of 2020: Jan ABC Corporation received its certificate of incorporation from Securities and Exchange Commission. From its submitted Articles of Incorporation, the corporation has a total of authorized share capital of P10,000,000.00 divided into 1,000,000 ordinary shares with par value of P10.00. Out of the total authorized share capital, 30% has been fully paid and issued at P11.00 per share to incorporators. The company incurred P120,000 directly related to the issuance of shares. Feb 1 Mr. Z, an investor, subscribed 20,000 shares at a subscription price of P15.00. ABC has collected 20% of the total subscription price and remaining balance payable within 10 days. 5 ABC issued 140,000 shares at P17.00 per share. ABC issued 40,000 shares in exchange for equipment. The fair value of the shares is P11.00 and the fair value of the equipment is P480,000. 28 9 ABC issued 30,000 shares for payment of legal…Problem 1: The Justice Corporation is authorized to issue 500,000 shares of ordinary share capital with a stated value of P20. The following transactions have taken place in relation to the share capital: a. Issued 125,000 shares for cash at stated value. b. Issued 2,500 shares to attorneys for services in securing corporate charter and for preliminary legal costs of organizing the corporation. The value of the services was P150,000. c. Issued 2,000 shares to the corporate promoters. Each ordinary share is selling at P25 on this date. d. Issued 10,000 shares in exchange for land valued at P300,000. e. Issued for cash 50,000 shares at P24 per share. Instructions: Prepare the journal entries to record the preceding transactions, including authorized capital, using the memorandum entry method.
- The following transactions relate to the shareholders' equity of Telecom Corporation for 2021, its initial year of operations and existence: 6. a. On January 7, the articles of incorporation were filed with the Securities and Exchange Commission (SEC). The SEC authorized the issuance of 10,000 shares of P50 par value preference share capital and 200,000 shares of P10 par ordinary share capital. On January 28, forty thousand ordinary shares were issued at P15 per share. On February 14, one hundred twenty thousand ordinary shares were issued in exchange for land and building that have an appraised value of P700,000 and P1,100,000, respectively. On this date, the shares trade at P15 per share on the over the counter market. On February 24, the company issued to the lawyers 2,000 ordinary shares for legal services in connection with the incorporation. The fair value of the shares on this date is P16. On September 12, the company received subscriptions for 10,000 preference shares at P53…Question: Wave Corp., A private corporation, received its articles of incorporation on January 3, 2024. It is authorized to issue an unlimited number of common shares and $1 preferred shares. These are the following share transactions during the year: Jan. 12 Issued 50,000 common shares for $5 per share. 24 Issued 950 common shares in payment of a $4,500 bill for legal services. July 11 Issued 1,000 preferred shares for $25 per share. Oct. 1 Issued 10,000 common shares in exchange for land. The land’s fair value was estimated to be $55,000. Santiago’s accountant estimated that the fair value of the shares issued might be as high as $6 per share. Journalize the share transactions. Calculate the average per share amount for the common shares. Show steps Please.During its first year of operations, Easten Data Links Corporation entered into the following transactions relating to shareholders' equity. The articles of incorporation authorized the issue of 8 million common shares, S1 par per share, and 1 million preferred shares, $50 par per share. E 18-5 Issuance of shares; noncash consideration Required: • LO18-4 Prepare the appropriate journal entries to record each transaction. Sold 2 million common shares, for $9 per share. Issued 40,0000 common shares to attorneys in exchange for legal services. Sold 80,000 of its common shares and 4,000 preferred shares for a total of $945,000. Issued 380,000 of its common shares in exchange for equipment for which the cash price was known to be $3,688,000. Feb. 12 13 13 Nov. 15