BFAR Corp. was authorized to issue 500,000 ordinary shares with a par value of P10. One of its subscribers was unable to pay the balance of his subscription amounting to P12,000. He subscribed to 2,000 shares at P12 per share. The company had the delinquent subscription auctioned and expenses related to the bidding amounted to P3,000. In the auction, the bidders were as follows: Anna, 1,225 shares; Ben, 1,096 shares; Carl, 1,200 shares; and Dianne, 1,250 shares. How many shares should be awarded to the delinquent subscriber?

BFAR Corp. was authorized to issue 500,000 ordinary shares with a par value of P10. One of its subscribers was unable to pay the balance of his subscription amounting to P12,000. He subscribed to 2,000 shares at P12 per share. The company had the delinquent subscription auctioned and expenses related to the bidding amounted to P3,000. In the auction, the bidders were as follows: Anna, 1,225 shares; Ben, 1,096 shares; Carl, 1,200 shares; and Dianne, 1,250 shares. How many shares should be awarded to the delinquent subscriber?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Brian Baluya was a subscriber of Global Appliance Corporation for 300 ordinary shares at P150 par value per share. He failed to pay his subscription balance of P27,000 which is equivalent to 180 shares despite lawful calls and notices being sent to him. The corporation declared all the shares to be delinquent and advertised this to an auction sale. Three (3) bidders were received all in sealed envelopes and signified their intentions to pay the subscription balance of P27,000 plus advertising expenses of P560 but differ on the share that each bidder wanted to acquire: Melanie Buenzuelan 170 shares Thelma Ciudadano 178 shares Gervacio Piator 180 shares Answer the following questions: What is the journal entry to record the delinquency sale of Brian Baluya? After the auction sale and upon issuance of certificates of shares, how many shares shall be issued to Brian Baluya? After the auction sale and upon issuance of certificates of shares, how many shares shall be issued to the highest…
Flower Garden Corporation has a delinquent subscription for 4,000 shares of its P20 par value shares capital. The delinquent subscriptions were originally subscribed at par. At the date of subscription, 45% payment has already been made. The delinquent subscription is to be sold at public auction. Expenses incurred for the auction amounts to P 8,500. The following are the bidders in the public auction: Fernand Hernandez 2,500 shares Kevin De Guzman 2,600 shares Gary Vasquez 2,000 shares How many shares will be given to the highest bidder and the delinquent subscriber? Using the question above, how much should the highest bidder pay for his bid? Using the question above, in case no highest bidder, the journal entry to record the issuance of the shares to the corporation includes:
The ABC Corporation received subscription for 9,000 ordinary shares at P40/share, where P35 is the par value and received 40% downpayment. A month after 3,600 of said shares were in full while the rest paid an additional P20/share. By the end of the year, 500 of said subscribers were not able to pay and were declared as delinquent. How much would be debited as Receivable from highest bidder?
Lacan Products Ltd. invited applications for 500,000 ordinary shares of $1 each at $1.30, payable as 40c on application. 70c (including 30c premium) on allotment, and 20c on first and final call, 4 months after allotment. Applications for all the shares were received and the shares duly allotted. All the allotment money was received but the holder of 1000 shares failed to meet the call and forfeited his shares in accordance with the articles of the company. All the forfeited shares were subsequently reissued as fully paid shares at 80c each. Required: Prepare the following accounts to record the issue of the shares. Application and allotment account Bank account Share Capital and Call accounts Share premium account and investment own shares account
Elizabeth Corporation decided to issue 2,000 share options to an employee in exchange of years of service. However, the fair value of the share options cannot be reliably measured as the entity operates in a highly specialized market where there are no comparable entities.The exercise price is P200 per share and the options were granted on January 1, 2016 when the value of each share was also estimated at P200 per share. On December 31, 2014, the value of the shares was estimated at P130 per share and the options vested on that date. What value should be placed on the share options issued for the year ended December 31, 2014?
A Ltd offered 50,000 shares of 10 each at a premium of 8 per share to the general public for subscription, payable as 5 on application (including premium 2), 6 on allotment (including premium 3), and 4 on first call (including premium 2) and the balance on second and final call. Issue was oversubscribed and all were allotted on pro-rata basis. One shareholder failed to pay anything after application and his/her shares were forfeited. Second call was not made. Company made following entry for forfeiture of defaulting shares. Share Capital A / C Dr 80,000 Securities Premium Reserve A / C Dr 40,000 To Share Forfeited A / C 60,000 To Calls in Arrears A / c 60,000 The share issue was oversubscribed by shares. (a) 50,000 (b) 40,000 (c) 10,000 (d) None of these
Entity A is an unlisted entity, and its shares are owned by two directors. The directors have decided to issue 1,000 share options to an employee in lieu of many years' service However, the fair value of the share options cannot be reliably measured as the entity operates in a highly specialized market where there are no comparable companies. The exercise price is P100 per share, and the options were granted on January 1, 20X4, when the value of the shares was also estimated at P100 per share. At the end of the financial year, December 31, 20X4, the value of the shares was estimated at P150 per share and the options vested on that date. Requirement: Provide all the entries in 20x4.
Entity A is an unlisted entity, and its shares are owned by two directors. The directors have decided to issue 1,000 share options to an employee in lieu of many years' service However, the fair value of the share options cannot be reliably measured as the entity operates in a highly specialized market where there are no comparable companies. The exercise price is P100 per share, and the options were granted on January 1, 20X4, when the value of the shares was also estimated at P100 per share. At the end of the financial year, December 31, 20X4, the value of the shares was estimated at P150 per share and the options vested on that date. Requirement: Provide all the entries in 20x4. Answers based on the requirement.. :) thank you!
Glass S.A. offered to the public 500,000 ordinary shares fully paid at $3.5 each and the shares were issued on 28 February 2019. The following costs were associated with the issue: promotional costs $5,000; legal costs $8,000; administration costs $3,000 and negotiation costs $1,000. On 1 April 2019, Glass S.A. invited Corp S.A. to purchase 300,000 preference shares at $3 each. At the time of accepting the offer, Corp S.A. paid with land and the balance with cash. The fair value of the land at the day of share purchase was $200,000. RequiredPrepare the journal entries necessary to account for the issue of the shares.
Sakshi Ltd. Issued a prospectus ,inviting application for 100000 shares of Rs.10 each at a.premium of Rs.5 per share , payable as follows:On application Rs.4.50; on allotment Rs.7.50(including premium); on first call Rs.2 and on final call Re.1.00. Application were received for 125000 shares and allotment was made pro-rated to the pplicantss of 120000 shares, remaining application being refused. Money received in excesson the application was adjusted towards the amount due to allotment. D, to whom 2000 shares were allotted, failed to pay allotment money and on his failure to ayy the first call, is shares were forfeited. M, the holder of 3000 shares, failed to pay the calls, and so is shares were also forfeited. All hesee shares were sold to R, credited as fully paid for Rs.8 per share. Pass necessary journalentries to record the above issue of shares by the company.
Slytherin Services, Inc. granted 8 million of its $1 par common shares to executives subject to foreiture if employment is terminated within three years. The common shares have a market price of $6 per share on the grant date of the restricted stock award. Ignoring taxes, what is the total compensation cost pertaining to the restricted shares (first answer, no dollar signs or commas, rounded to the nearest whole dollar)?
MUSCAT SAOG has registered its capital as 5,000,000 divided into 5,000,000 shares of OMR 1 each. The company offered 3,000,000 shares of OMR 1 each to the public for subscription. The Initial Public offer by the company was oversubscribed by 3 times and the company rejected 1/3rd of the applications and the remaining shares were made on a pro-rata allotment of 2: 1 and refunded the excess amount. The company called up OMR 0.700 baisa per share. The company received the entire call amount except on 50,000 shares who did not pay the call amount The number of shares were rejected by the company was: a. OMR 1,000,000 b. OMR 2,000,000 c. OMR 3,000,000 d. OMR 4,000,00