IV. Gujilde Corp., organized on June 1, 2014, was authorized to issue stock as follows: • 800,000 shares of 9% preferred stock, convertible, P100 par • 2,500,000 shares of common stock, P2.50 stated value During the remainder of the fiscal year ended May 31, 2015, the following transactions were completed in the order given: • 300,000 shares of preferred stock were subscribed for at P105, and 900,000 shares of common stock were subscribed for at P26. Both subscriptions were payable 30% upon subscription, the balance in one payment. • The second subscription payment was received, except one subscriber for 60,000 shares of common stock defaulted on payment. The full amount paid by this subscriber was returned, and all of the fully paid stock was issued. • 150,000 shares of common stock were reacquired by purchase at P28. • Each share of preferred was converted into four shares of common stock. • The treasury stock was exchanged for machinery with a fair market value of P4,300,000. • There was a 2-for-1 stock split, and the stated value of the new common stock is P1.25. • Net income was P830,000. QUESTIONS: Based on the above and the result of your audit, determine the following as of May 31, 2015: 16. Common stock 17. Total additional paid-in capital 18. Total contributed capital 19.Total stockholders’ equity IV. Gujilde Corp., organized on June 1, 2014, was authorized to issue stock as follows:.800,000 shares of 9% preferred stock, convertible, P100 par2,500,000 shares of common stock, P2.50 stated valueDuring the remainder of the fiscal year ended May 31, 2015, the following transactions were completed in the ordergiven:300,000 shares of preferred stock were subscribed for at P105, and 900,000 shares of common stock weresubscribed for at P26. Both subscriptions were payable 30% upon subscription, the balance in one payment.The second subscription payment was received, except one subscriber for 60,000 shares of common stockdefaulted on payment. The full amount paid by this subscriber was returned, and all of the fully paid stock wasissued.150,000 shares of common stock were reacquired by purchase at P28.Each share of preferred was converted into four shares of common stock.The treasury stock was exchanged for machinery with a fair market value of P4,300,000.There was a 2-for-1 stock split, and the stated value of the new common stock is P1.25.Net income was P830,000.QUESTIONS:Based on the above and the result of your audit, determine the following as of May 31, 2015:16. Common stock17.Total additional paid-in capital18.Total contributed capital19. Total stockholders' equityV. Short Problems

Common Stock Number Par Value Amount Issued 840,000 2.5 2,100,000 Less:…

Answered: Based on the above and the result of…

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 22E

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IV. Gujilde Corp., organized on June 1, 2014, was authorized to issue stock as follows:

• 800,000 shares of 9% preferred stock, convertible, P100 par
• 2,500,000 shares of common stock, P2.50 stated value

During the remainder of the fiscal year ended May 31, 2015, the following transactions were completed in the order
given:

• 300,000 shares of preferred stock were subscribed for at P105, and 900,000 shares of common stock were
subscribed for at P26. Both subscriptions were payable 30% upon subscription, the balance in one payment.

• The second subscription payment was received, except one subscriber for 60,000 shares of common stock
defaulted on payment. The full amount paid by this subscriber was returned, and all of the fully paid stock was
issued.

• 150,000 shares of common stock were reacquired by purchase at P28.

• Each share of preferred was converted into four shares of common stock.

• The treasury stock was exchanged for machinery with a fair market value of P4,300,000.

• There was a 2-for-1 stock split, and the stated value of the new common stock is P1.25.

• Net income was P830,000.

QUESTIONS:

Based on the above and the result of your audit, determine the following as of May 31, 2015:
16. Common stock
17. Total additional paid-in capital

18. Total contributed capital

19.Total stockholders’ equity

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