ccumulated Profits (Losses) he Corporation reacquires 100 shares at P55.00 per share, and later sold these sha r: P55.00 per share (at cost) P60.00 per share (above cost) P50.00 per share (below cost) equired: Journal Entry to record the acquisition of the treasury shares. Journal entry to record the sale of the treasury shares under the three given cases. 10,000

ccumulated Profits (Losses) he Corporation reacquires 100 shares at P55.00 per share, and later sold these sha r: P55.00 per share (at cost) P60.00 per share (above cost) P50.00 per share (below cost) equired: Journal Entry to record the acquisition of the treasury shares. Journal entry to record the sale of the treasury shares under the three given cases. 10,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Answer with computation and explanation If the total authorized share capital is P1,000,000 at P10 par, the unissued share capital is 25,000 shares, and all the issued shares were sold at P15, then the total shareholders' equity before any operation activities is a 2 750,000. b P1,125,000 c. P375,000. d. P250,000.
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?
Question 3.) Alma Corp. issues 1,000 shares of P10 par value share at P14 per share. When the transaction is recorded, credits are made to? A. Share Capital P14,000 B. Share Capital P4,000 and APIC P10,000 C. Share Capital P10,000 and APIC P4,000 D. Share Capital P10,000 and Retained Earnings P4,000
Item No. 4 is based on the following information: nysg bns n Luningning Corporation sold for cash 400 preference shares with a par value of P 50 per share at P56 per share. Also, 600 ordinary shares with no par value but with stated value of P 100 per share were sold for P 102 per share. 4. What would be the effect of the transaction on the total Share Premium account? a. PO. C. P 2,400. b. P 1,200. d. P 3,600.
Problem 2: (Book Value per share with Two Classes of Preference Shares)TINT Corporation presents the following condensed statement of financial position as of the close of the year:Cash ₱ 520,000 Accounts Payable ₱ 550,000Other Assets 1,333,000 Ordinary Share Capital 550,0005% Preference Share Capital 330,0007% Preference Share Capital 220,000Accumulated Profits 203,000Total Assets ₱ 1,853,000 Total Equities ₱ 1,853,000The 5% preference share capital is cumulative, the 7% preference share capital is non-cumulative, but both are fully participating. The par value of all shares is ₱100. Requirements:C. Compute for the book value per share for: 5. Ordinary shares6.a. 5% Preference shares b. 7% Preference shares
You are given the following information: ordinary shares, P80,000 (P80par); Share Premium-Ordinary, 200,000; and Retained Earnings, P400,000.Assuming only one class of share, the book value per share is? a.P280 b. P680 c. P80 d. P400
Item 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.
The following data were taken from the records of Montefalco Steel Corporation: Journalizing. Analyze and journalize (with corresponding explanation) the transactions that happened in the following EXERCISE 1.3 problems. Share Capital, P50 par, 3,000 shares Authorized 1,000 shares issued Premium on Share Capital Accumulated Profits (Losses) P50,000 P3,000 P10,000 me Corporation reacquires 100 shares at P55 per share, and later sold these share for: a. P55 per share (at cost) b. P60 per share (above cost) c. P50 per share (below cost) Required: 1. Journalize the acquisition of the treasury shares. Credit P.R. Debit Description 2. Journalize the sale of the treasury shares under the three given independent cases. CASE 1 Description P.R. Debit Credit CASE 2 CASE 3 A SHOT ON OPPO
2. Harmony Corporation declared share dividends of 1 share for every 5 shares owned on its 200,000 issued and outstanding shares with a par value of P50 per share. at the time of declaration, the market value of ordinary shares was P80 per share and P100 per share at the time the shares were issued. What amount should be charged to Retained Earnings account and credit liability accounts, respectively? Group of answer choices 2,000,000 and -0- 2,500,000 and 2,500,000 4,000,000 and -0- 4,000,000 and 4,000,000
2. An entity showed the following data:Share capital, par value P10, 25,000 shares issued 250,000Share Premium 50,000Retained Earnings 150,000Market value of share on declaration date 20Market value of share on distribution date 40a. If a 10% share dividend will be declared, what amount of retained earnings will be capitalized? Prepare the entries on declaration and distribution date.b. If a 25% share dividend will be declared, what amount will be charged to retained earnings? Prepare the entries on declaration and distribution date
An entity provided the following shareholders' equity at year-end:Ordinary share capital, P100 par, 72,000 shares 7,200,000Subscribed ordinary share capital, 12,000 shares 1,200,000Subscription receivable 400,000Treasury shares, 4,000 at cost 600,000Retained earnings 2,000,000What is the book value per ordinary share?
BFAR Corporation has the following information in its shareholders' equity: Ordinary Share Capital of P1,600,000 - P200 par value Share Premium, P400,000 Accumulated Profits of P900,000. ● A share dividend of 6% was declared when the share is selling at P500 per share. Compute the balance of Accumulated Profits after dividend declaration.