Bulla Company issues 4,000 shares of its P5 par value ordinary share having a fair value of P25 per share and 6,000 shares of its P15 par value preferred share having a fair value of P20 per share for a lump sum of P204,000. What amount of the proceeds should be allocated to the preferred share? a. P182,750 b. P127,500 c. P95,625 d. P111,273

Q: High paid €64,000 to acquire an 80% interest (4,000 €1 shares) in the ordinary share capital of Low…

A: The consolidated group reserves as at 31 December 20X3 are (A) €124,000

Q: Anti Corp. purchased 10,000 shares of Pro Corp. at P60 per share. The shares represent less than 5%…

A: All journal entries regarding every transaction given below

Q: DEF Corporation currently have Ordinary Share Capital, P 20 par, 50,000 shares and replace it by…

A: Ordinary shares are one of the important source of finance for the business. When shares are issued…

Q: On January 1, 20x1 Pinup Corp acquired 34,560 outstanding ordinary shares of Slug corp. for a cash…

A: Calculation of amount of non-controlling interest  are as follows.

Q: JKL:o. issued 20,000 shares of its P25 par value ordinary shares and 4,000 shares of its P50 par…

A: Definition: Preferred stock: Preferred stock is the cash raised by the company by issuing preferred…

Q: The entity received P7, 580,000 cash from the issuance of its 9%, 3-year P8, 000,000 par value…

A: Preference Share- Preferred stock (also called preferred shares, preference shares, or simply…

Q: before the transaction, Richard, Inc. have 20,000 outstanding shares. Richard issued  12,000 shares…

A: The business combination is a transaction by which the buyer acquires the control of the seller's…

Q: On January 1, 2021, the Swiss Company purchased 10,000 ordinary shares at P80 per share to be…

A: Right shares are the shares issued after original issue to the existing shareholder to purchase more…

Q: Sandy Company owns 15,000 of the 100,000 ordinary shares of X Corporation. The investment is…

A: Stock dividend is the dividend available to the shareholders but in the form stock. Not in the form…

Q: COMBO Co. issued 20,000 shares of its P25 par value ordinary shares and 4,000 shares of its P50 par…

A:

Q: COMBO Co. issued 20,000 shares of its P25 par value ordinary shares and 4,000 shares of its P50 par…

A: No of ordinary shares 20,000 @ P25 500000 No of Preference shares 4000@50  200000 Cash 3,50,000…

Q: During Year 1, Peninsula Corporation acquired, as financial ssets at fair value through profit or…

A:

Q: The company issued for P1,000,000 cash, 1,000 shares of P200 par value Preference share and 2,000…

A: The value received in excess of par value is credited to share premium account.

Q: Item No. 1 is based on the following information: IsV bats12 to 2293x3 ni Istiq6) sier…

A: The paid up capital is the amount of minimum value of shares to be issued.

Q: ABC Co holds 20,000 shares of XYZ Inc as investment in equity security measured at FVOCI. The…

A: The right issues receive would be a part of investment and recognize at fair value at the receiving…

Q: Red Co. owned 50,000 shares of another Blue Co.. These 50,000 shares were originally purchased for…

A: Shares refers to equity stocks in a firm. It represents the units of equity ownership held by…

Q: Maganda Company had the following transactions for 20x5:   a. On January 1, 20x5 Maganda Company…

A: SOLUTION- INVESTMENT IN EQUITY- INVESTMENT IN EQUITY SECURITIES IS THE CURRENT OR NON-CURRENT…

Q: Gates Corp. received a donation of 2,000 shares of its P5 par value ordinary shares from a…

A: Donated Treasury share :- Effect on Treasury stock and a profit or revenue account :- Treasury…

Q: On 30 April 20X2, Marc Company purchased 4,000 shares of Spencer Ltd. for $17 per share plus $400 in…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…

Q: (A) Assume that all the rights were sold at the market price of P5. Give the entry to record this…

A: Assume that all the rights were sold at the market price of P5. Journal entry to record this sale is…

Q: On January 1, 2023, Japan Company acquired 50,000 shares of David Company ordinary shares for a…

A: Preference shares are those shares whose holders are having priority over the common ordinary shares…

Q: Temporai Company owned P50.000 ordinary shares. These 50000 shares were purchased for P120 per…

A: A right issue is the opportunity or offer given to the existing shareholders that to get shares at…

Q: On July 1, 2021, Matiyaga Company purchased  1,000 shares of Masipag  Corp. P100 par ordinary shares…

A: In the context of the given question, we are required to compute the carrying value of Matiyaga's…

Q: During Year 1, Peninsula Corporation acquired, as financial assets at fair value through profit or…

A:

Q: Red Co. owned 50,000 shares of another Blue Co.. These 50,000 shares were originally purchased for…

A: The question is based on the concept of Corporate Accounting. Right shares are the shares offered by…

Q: before the transaction, Richard, Inc. have 20,000 outstanding shares. Richard issued  12,000 shares…

A: 1. Goodwill (gain on bargain purchase) on the business combination:

Q: Virma Corporation sold to a subscriber 500 shares of its P 30 par value ordinary      shares at P 32…

A: Share Capital:- It is the capital that is invested by the shareholders in the company for the…

Q: On January 1, 2021, the Swiss Company purchased 20,000 ordinary shares at P100 per share to be…

A: Right offers are the offers given after original issue to the current investor to buy a greater…

Q: . The investee distributed 50,000 rights to Tulips Company. Tulips Company was entitled to buy one…

A: Right shares are the shares offered by the company at lower than market value.

Q: 2. Purco Ltd underwrites 65% of an issue of 750 000 ordinary shares at R15 each in Karce Ltd. The…

A: Given that, issue of 750000 shares at R15 per share. 65% of the issue is underwritten underwriters…

Q: JKL Co. issued 20,000 shares of its P25 par value ordinary shares and 4,000 shares of its P50 par…

A: Equipments acquired should be recorded in books of accounts at fair value.

Q: Inn Corporation had 30,000 ordinary shares of NP which were acquired during Year 2 for a total…

A: Introduction Equity investments are measured at initial recognition in the beginning and at fair…

Q: On January 1, 20x1, ABC Co. purchased 1,000 shares of XYZ, Inc. for ₱250,000. Commission paid to…

A: Measuring equity shares at fair value through profit or loss - means the shares are restated at the…

Q: Fblue acquired land with a fair value of P10,500,000 and paid for it in full by issuing P50 par…

A: The par value of shares means the value that is stated by the company at the time of the issue. The…

Q: Maganda Company had the following transactions for 20x5: a. On January 1, 20x5 Maganda Company…

A: Investment in equity securities is the current or non-current investment made by the firm in the…

Q: Teacher Inc. will issue share of P25-par ordinary share for the net assets of Student Co. Teacher…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: 1. How much is the income recognized upon receipt of share rights? a. P0  b. P10,000 c. P20,000  d.…

A: On April 5. 2020, Paul Company purchased P50 par, 10,000 ordinary shares of George Company at P80…

Q: How much is the gain (loss) on sale at Jan 20X2?     15,000 11,500 5,000 1,500

A:

Q: At what amount should the investment be shown on Inn Corporation had 30,000 ordinary shares of NPA…

A: Bonus issue = 30000 shares x 20%= 6000 shares Total number of shares after bonus issue  (30000 +…

Q: Fiona Company issued 21,500 ordinary shares with par value of P85 in exchange for land with a fair…

A: The amount of ordinary share premium is equal to the consideration received in excess of the par…

Q: Aldous Corporation owned 50,000 ordinary shares held for trading. These 50,000 shares were purchased…

A: Rights issue : A rights issue is an offering of rights to the existing shareholders of a company…

Q: Inn Corporation had 30,000 ordinary shares of which were acquired during Year 2 for a total…

A: Answer -   December 31, Year 2 ledger balance (30,000 x P65)                  P1,950,000 Cost…

Q: Jackie Inc. made the following capital transactions on a domestic share not listed in the exchange…

A: The answer is stated below:

Q: Pedantic Co. purchased 20,000 shares on 1 July 20x0, making the election to use the alternative…

A: Under FVTOCI, Financial Instruments initially record at fair value and add transaaction cost…

Q: On 1/1/20x1, Petwoud Company exchanged 25,000 shares of its $1 par value common stock and $150,000…

A: Acquisition refers to acquiring shares of one company by another company in a large percentage. This…

Q: COMBO Co. issued 20,000 shares of its P25 par value ordinary shares and 4,000 shares of its P50 par…

A: Assets acquired should be entered in books of accounts at fair value of assets. Equipment having…

Q: 21, Pak ordinary shares are selling at P180/share. [ 5/share incurring P2,000 transaction costs on…

A: Solution calculation of gain on sale of shares Cost of shares = (1000 x 150) + 4,000 = 154,000 Now…

Q: In 2020, Edsel Company issued for P210 per share, 24,000 shares of P100 par value convertible…

A: The conversion of preference shares into ordinary shares will be booked at book value of preference…

Q: Galaxy Company owned 30,000 ordinary shares of Grand Company acquired on July 31 at a total cost of…

A: The investors will invest in a company to earn profits from the investment. Before investing the…