An entity issues shares as consideration for the purchase of inventory. The shares were issued on January 1, 20X4. The inventory is eventually sold on December 31, 20X5. The value of the inventory on January 1, 20X4, was P3 million. This value was unchanged up to the date of sale. The sale proceeds were P5 million. The shares issued have a market value of P3.2 million. Requirement: Provide all the entries in 20x4 and 20X5.
An entity issues shares as consideration for the purchase of inventory. The shares were issued on January 1, 20X4. The inventory is eventually sold on December 31, 20X5. The value of the inventory on January 1, 20X4, was P3 million. This value was unchanged up to the date of sale. The sale proceeds were P5 million. The shares issued have a market value of P3.2 million. Requirement: Provide all the entries in 20x4 and 20X5.
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 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
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An entity issues shares as consideration for the purchase of inventory. The shares were issued on January 1,
20X4. The inventory is eventually sold on December 31, 20X5. The value of the inventory on January 1, 20X4,
was P3 million. This value was unchanged up to the date of sale. The sale proceeds were P5 million. The shares
issued have a market value of P3.2 million.
Requirement: Provide all the entries in 20x4 and 20X5.
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