After formation on Aug. 1, 2018, the ledger accounts of the Ilano Corporation have the following balances: Accrued Expenses = P50,000 Accounts Payable = P400,000 Accounts Receivable = P220,000 Allowance for Uncollectible Accounts = P20,000 Building = P1,000,000 Cash = P160,000 Ordinary Shares, P250 par, 50,000 shares authorized = P1,513,000 Subscribed Ordinary Shares = P80,000 Furniture and Fixtures = P250,000 Merchandise Inventory = P1,000,000 Notes Payable-Short Term = P250,000 Organization Expense = P30,000 Share Premium-Ordinary = P60,000 Share Premium-Preference = P30,000 10% Noncumulative and Nonparticipating Preference Shares, 30,000 P500 par, 5,000 shares authorized = P250,000 10% Preference Shares Subscribed, P500 par = P100,000 Subscriptions Receivable-Ordinary = P41,000 Subscriptions Receivable-Preference = P52,000 Required: 1. Determine the following: a. How many ordinary shares are outstanding? b. How many ordinary shares are subscribed? c. How many preference shares are outstanding? d. How many preference shares are subscribed? e. At what average price has ordinary shares been subscribed or issued? f. Assume that no dividends are paid in the first year of the corporation's existence. What are the rights of the preference shareholders? g. Assuming that all of the Share Premium-Ordinary was applicable to the ordinary shares that have been subscribed but not yet issued, what was the subscription price per share of the ordinary shares subscribed? h. Assuming that the board of directors declared no dividends in 2018. what amount would have to be paid the preference shareholders in 2019 before any dividend could be paid to the ordinary shareholders? 2. Prepare a classified statement of financial position for the corporation immediately after formation. Ps: only letter d - number 2 is unanswered. only a-c is already answered.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
After formation on Aug. 1, 2018, the ledger accounts of the Ilano Corporation have the following balances:
Accrued Expenses = P50,000
Accounts Payable = P400,000
Accounts Receivable = P220,000
Allowance for Uncollectible Accounts = P20,000
Building = P1,000,000
Cash = P160,000
Ordinary Shares, P250 par, 50,000 shares authorized = P1,513,000
Subscribed Ordinary Shares = P80,000
Furniture and Fixtures = P250,000
Merchandise Inventory = P1,000,000
Notes Payable-Short Term = P250,000
Organization Expense = P30,000
Share Premium-Ordinary = P60,000
Share Premium-Preference = P30,000
10% Noncumulative and Nonparticipating
10% Preference Shares Subscribed, P500 par = P100,000
Subscriptions Receivable-Ordinary = P41,000
Subscriptions Receivable-Preference = P52,000
Required:
1. Determine the following:
a. How many ordinary shares are outstanding?
b. How many ordinary shares are subscribed?
c. How many preference shares are outstanding?
d. How many preference shares are subscribed?
e. At what average price has ordinary shares been subscribed or issued?
f. Assume that no dividends are paid in the first year of the corporation's existence. What are the rights of the preference shareholders?
g. Assuming that all of the Share Premium-Ordinary was applicable to the ordinary shares that have been subscribed but not yet issued, what was the subscription price per share of the ordinary shares subscribed?
h. Assuming that the board of directors declared no dividends in 2018. what amount would have to be paid the preference shareholders in 2019 before any dividend could be paid to the ordinary shareholders?
2. Prepare a classified
Ps: only letter d - number 2 is unanswered. only a-c is already answered.
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