ANSWER LETTER D AND E 84%9:02XF.The Silver Ray Corporation was organized on January 1, 2018 with authorized share capital consisting of50,000 preference shares with a par value of P 50 and 1,000,000 of no-par ordinary shares with a statedvalue of P 10 per share. At December 31, 2018, the ledger included the following balances pertaining toshareholders' equity.Preference Share CapitalPreference Share PremiumP 1,000,000120,000Ordinary Share CapitalOrdinary Share Capital in Excess of Stated Value3,000,0004,500,00010,000 preference shares were issued in exchange for equipment having a fair value of P 550,000. Theremaining preference shares were issued for cash. All ordinary shares were issued for cash.Required: Compute for the following:a) Number of preference shares issued for cashb)Price per share of preference share capital issued for cashc) Number of ordinary shares issuedd) Average price per share of the ordinary share capital issued for cashe) Total preference share premium arising from issuance in exchange for equipment.|||O<

There are two type of shares being issued by the business for raising capital. These are ordinary…

F. The Silver Ray Corporation was organized on January 1, 2018 with authorized share capital consisting of 50,000 preference shares with a par value of P 50 and 1,000,000 of no-par ordinary shares with a stated value of P 10 per share. At December 31, 2018, the ledger included the following balances pertaining to shareholders' equity. Preference Share Capital P 1,000,000 Preference Share Premium Ordinary Share Capital 120,000 3,000,000 4,500,000 Ordinary Share Capital in Excess of Stated Value 10,000 preference shares were issued in exchange for equipment having a fair value of P 550,000. The remaining preference shares were issued for cash. All ordinary shares were issued for cash. Required: Compute for the following: a) Number of preference shares issued for cash b) Price per share of preference share capital issued for cash c) Number of ordinary shares issued d) Average price per share of the ordinary share capital issued for cash e) Total preference share premium arising from issuance in exchange for equipment.

F. The Silver Ray Corporation was organized on January 1, 2018 with authorized share capital consisting of 50,000 preference shares with a par value of P 50 and 1,000,000 of no-par ordinary shares with a stated value of P 10 per share. At December 31, 2018, the ledger included the following balances pertaining to shareholders' equity. Preference Share Capital P 1,000,000 Preference Share Premium Ordinary Share Capital 120,000 3,000,000 4,500,000 Ordinary Share Capital in Excess of Stated Value 10,000 preference shares were issued in exchange for equipment having a fair value of P 550,000. The remaining preference shares were issued for cash. All ordinary shares were issued for cash. Required: Compute for the following: a) Number of preference shares issued for cash b) Price per share of preference share capital issued for cash c) Number of ordinary shares issued d) Average price per share of the ordinary share capital issued for cash e) Total preference share premium arising from issuance in exchange for equipment.

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

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 26P

See similar textbooks

Similar questions

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.
Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
The following accounts are found in the trial balance of Dawn Corporation as December 31, 2019. Authorized Ordinary share capital, P 100 par P1,000,000; Unissued Ordinary share capital P300,000; Subscribed Ordinary share P200,000; Ordinary share subscription receivable P100,000; Ordinary share premium P70,000. The total number of shares issued is _____. Using data above, the total number of shares still available for subscription is ______.
The following shareholders’ equity accounts are included in the statement of financial position of CONDESSA CO. on December 31, 2018. Preference share capital, 8%, P100 par (200,000 shares authorized, 60,000 shares issued and outstanding) P6,000,000 Ordinary share capital, P5 par (2,000,000 shares authorized, 600,000 shares issued and outstanding) 3,000,000 Share premium 3,750,000 Retained earnings 3,500,000 Total P16,250,000 During 2019, Condessa took part in the following transactions concerning equity. 1. Paid the annual 2018 P8 per share dividend on preference shares and a P2 per share dividend on ordinary shares. These dividends had been declared on December 31, 2018. 2. Purchased 81,000 shares of its own outstanding…
The following shareholders’ equity accounts are included in the statement of financial position of CONDESSA CO. on December 31, 2018. Preference share capital, 8%, P100 par (200,000 shares authorized, 60,000 shares issued and outstanding) P6,000,000 Ordinary share capital, P5 par (2,000,000 shares authorized, 600,000 shares issued and outstanding) 3,000,000 Share premium 3,750,000 Retained earnings 3,500,000 Total P16,250,000 During 2019, Condessa took part in the following transactions concerning equity. 1. Paid the annual 2018 P8 per share dividend on preference shares and a P2 per share dividend on ordinary shares. These dividends had been declared on December 31, 2018. 2. Purchased 81,000 shares of its own outstanding…
G. Shown below are account balances found in the ledger of Honesty Corporation at the end of year 2018: Subscription Receivable-Preference Share Subscription Receivable-Ordinary Share P 360,000 182,000 8% Preference Share Capital, P 50 par value, 80,000 shares authorized Issued P 1,440,000 Subscribed 720,000 2,160,000 Ordinary Share Capital, no par, P 10 stated value 320,000 shares authorized Issued P 1,360,000 Subscribed 280,000 1,640,000 Additional Paid In Capital Preference Share Premium P 216,000 Paid-In Capital In Excess of Stated Value 328,000 544,000 Required: Compute for the following: 1) Number of Preference shares issued 2) Number of Ordinary shares issued 3) Number of subscribed preference shares 4) Number of subscribed ordinary shares 5) Average price per share received by the corporation on its preference share capital including subscribed shares 6) Average price per share received by the corporation on its ordinary share capital including subscribed shares 7) Average…
17. The following balances are shown in the shareholders’ equity of Rumoosh Company on December 31, 2018: Preference share capita, P10 par, 100,000 shares 1,000,000 Ordinary share capital, P10 par, 500,000 shares 5,000,000 Share premium – preference 50,000 Share premium – ordinary 200,000 Retained earnings 100,000 Total 6,350,000 During 2019, the following transactions pertaining to the shareholders’ equity were completed: Retirement of 5,000 preference shares at P11 per share. Purchase of 5,000 ordinary shares at P12 per share. Share split, ordinary, 2 for 1. Reissue of 2,000 treasury shares at P8 per share. Profit for 2019, P300,000. The total shareholders’ equity on December 31, 2019 is Group of answer choices A. 6,556,000 B. 6,551,000 C. 6,350,000 D. 6,251,000
1. Using the information provided below, what is the share premium balance on December 31, 2021? The following are Lyca Company's equity accounts at December 31, 2020: • Ordinary share capital, par value P10; authorized 200,000 shares; issued and outstanding 120,000 shares. ............... P1,200,000 • Share premium........ ............... 180,000 • Retained earnings................ .............................. 720,000 . Lyca Company uses the cost method of accounting for treasury shares. The following transactions occurred in 2021: - Acquired 8,000 ordinary shares for P144,000. - Sold 6,500 treasury shares at P20 per share - Retired the remaining treasury shares a. P117,000 b. P168,000 c. P181,000 d. P193,000
The Silver Ray Corporation was organized on January 1, 2018 with authorized share capital consisting of 50,000 preference shares with a par value of P 50 and 1,000,000 of no-par ordinary shares with a stated value of P 10 per share. At December 31, 2018, the ledger included the following balances pertaining to shareholders’ equity. Preference Share Capital P 1,000,000 Preference Share Premium 120,000 Ordinary Share Capital 3,000,000 Ordinary Share Capital in Excess of Stated Value 4,500,000 10,000 preference shares were issued in exchange for equipment having a fair value of P 550,000. The remaining preference shares were issued for cash. All ordinary shares were issued for cash. Required: Compute for the following: a) Number of preference shares issued for cash b) Price per share of preference share capital issued for cash c) Number of ordinary shares issued d) Average price…
Alpha company reported the following equity accounts on January 1, 2020. Share capital, P20 par, P8,000,000; Share premium, P2,750,000; Retained earnings, P1,275,000. All shares outstanding on January 1 were issued for P26 a share. On December 31, the entity reacquired 20,000 shares at P24 a share and retired them. What is the balance of the share premium?
The following shareholders’ equity accounts are included in the statement of financial position of Kiwi Co. on December 31, 2020. • Preference share capital, 8%, P100 par (200,000 shares authorized, 60,000 shares issued and outstanding)- P6,000,000 • Ordinary share capital, P5 par (2,000,000 shares authorized, 600,000 shares issued and outstanding) -P3,000,000 • Share premium- P3,750,000 • Retained earnings- P3,500,000 In 2021, Kiwi took part in the following transactions concerning equity. 1. Paid the annual 2020 P8 per share dividend on preference shares and a P2 per share dividend on ordinary shares. These dividends had been declared on December 31, 2020. 2. Purchased 81,000 shares of its own outstanding ordinary shares for P40 per share. 3. Reissued 21,000 treasury shares for land valued at P900,000. 4. Issued 15,000 preference shares at P105 per share. 5. Declared a 10% stock dividend on the outstanding ordinary shares when the shares are selling for P45 per share. 6. Issued the…
The following accounts are found in the trial balance of Dawn Corporation as December 31, 2019. Authorized Ordinary share capital, P 100 par P1,000,000; Unissued Ordinary share capital P300,000; Subscribed Ordinary share P200,000; Ordinary share subscription receivable P100,000; Ordinary share premium P70,000. The total number of shares issued is Using data in number 1, the total number of shares still available for subscription is