Deficit Corporation has incurred losses from operations for many years. The board of directors applied for a quasi-reorganization in the SEC and eventually acquired an approval on August 31, 2020. Deficit’s balance sheet on this date is presented below (SEE PICTURE BELOW): As part of the quasi-reorganization process, PPE will be reduced by P1,750,000 while other assets be decreased by P750,000. Par value of the ordinary shares will be reduced by P5 per share. How much is the balance of shareholder’s equity after the quasi-reorganization? a. P4,000,000 b. P8,000,000 c. P9,000,000 d. P5,000,000

Deficit Corporation has incurred losses from operations for many years. The board of directors applied for a quasi-reorganization in the SEC and eventually acquired an approval on August 31, 2020. Deficit’s balance sheet on this date is presented below (SEE PICTURE BELOW): As part of the quasi-reorganization process, PPE will be reduced by P1,750,000 while other assets be decreased by P750,000. Par value of the ordinary shares will be reduced by P5 per share. How much is the balance of shareholder’s equity after the quasi-reorganization? a. P4,000,000 b. P8,000,000 c. P9,000,000 d. P5,000,000

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 17E

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Charice Company revealed the following shareholder’s equity at year end:Preference share capital, P100 par 2,300,000Share premium – PS 805,000Ordinary share capital, P15 par 5,250,000Share premium 2,750,000Subscribed ordinary share capital 500,000Retained earnings 1,900,000Note payable 4,000,000Subscription receivable - ordinary 400,000How much is the legal capital?
1. Avalanche Inc. revealed the following information for the year ended December 31. 2021 Preference share. P100 par-P2.4 million; Share premium, preference - P700,000; Ordinary share, P15 par-P3.5 million, Share premium, ordinary-P1.5 million. Subscribed ordinary share - P100,000, Retained earnings - P2 million, Subscription receivable, ordinary - P20,000 How much is the legal capital? A.P6 million B.PB 1 million CP5.9 million D.P8 2 million 2.At the beginning of 2021, DAI Corp. was organized with authorized capital of 200,000, P500 par value shares. The following transactions transpired during its first year of business. February 4- Issued 15.000 shares at P510 per share April 10- Issued 3,000 shares for services received (FMV of the services is P1.7 million). October 23-Issued 5,000 shares in exchange for a land (FMV) the land is P3 million) What amount should be reported as share premium? A.11.500.000 B. 23.000 C.850.000 D.12.350.000 3. At the beginning of 2021, DAI Corp. was…
The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below:Current Assets P195,000Land 1,320,000Building 660,000Equipment 525,000Total Assets P2,700,000Liabilities P525,000Ordinary Shares, P5 par 900,00Share Premium 825,000Retained Earnings 450,000Total Equities P2,700,000All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Corporation acquired 80% of Arthur’s outstanding shares for P3,000,000. The non-controlling interest is measured at fair value.Required:a. Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-controlling interest is…
The shareholder’ equity of L Corp on Dec 31, 2021 follows: 10% Preference share capital P100 par, 45,000 shares P4,500,000Ordinary share capital, P20 par, 180,000 sharesP3,600,000Preference share premium P1,000,000Ordinary share premium P900,000Retained Earnings P5,390,000Total shareholder’s equity P15,390,000 Preference share are cumulative with dividends in arrears for 2 years with a liquidation value of P110. What is the book value per share of preference share capital?
Answer with computation and explanation If the total authorized share capital is P1,000,000 at P10 par, the unissued share capital is 25,000 shares, and all the issued shares were sold at P15, then the total shareholders' equity before any operation activities is a 2 750,000. b P1,125,000 c. P375,000. d. P250,000.
a company has the following items: share capital-ordinaty: $920,000 treasury shares : $85,000 deferred taxes $100,000 retained earning : $ 363,000 which ammount should be report as total equity ? A- 1098000 B- 1198000 C- 1298000 D- 1398000
ABC Company reported the following information on December 31, 2020: Ordinary share capital, P3 par 600,000 Share premium 800,000 Treasury shares, at cost 50,000 Net unrealized loss on available for sale securities (investment at FVTOCI) 20,000 Retained earnings appropriated for unissued earthquake loss 150,000 Retained earnings unappropriated 200,000 What amount should be reported as total shareholders' equity on December 31, 2020?
An entity provided the following shareholders' equity at year-end:Ordinary share capital, P100 par, 72,000 shares 7,200,000Subscribed ordinary share capital, 12,000 shares 1,200,000Subscription receivable 400,000Treasury shares, 4,000 at cost 600,000Retained earnings 2,000,000What is the book value per ordinary share?
8. The shareholders’ equity section of THANOS Company revealed the following information on December 31, 2021: Preference share, ₱100 par,₱2,300,000; share premium-preference, ₱805,000; ordinary share,₱15 par, ₱5,250,000; share premium-ordinary, ₱2,750,000; subscribed ordinary share,₱50,000; Accumulated profits and losses,₱1,900,000; and stock dividends payable-ordinary, ₱450,000. How much is legal capital? * ₱ 8,000,000 ₱ 7,600,000 ₱ 8,050,000 ₱ 5,750,000
Current Assets P 1,375,000Property, plant and equipment 3,375,000Other non-current assets 500,000Total Assets P 5,250,000 Liabilities and Shareholders’ equity Total liabilities P 1,500,000Ordinary shares, P10 par value 4,000,000Additional paid in capital 750,000Deficit (1,000,000)Total liabilities and equity P 5,250,000The stockholders and creditors approved the quasi reorganization effective July 1,2011, to be accomplishedby a reduction in property, plant and equipment (net) P 875,000, a reduction in other non-current assets ofP375,000, and a reduction in par value from P10 to P51. Logan’s July 1 balan ce sheet after the quasi-reorganization should show total assets ofa. P 4,000,000b. P 2,500,000c. P 4,375,000d. P 3,875,0002. The balance in additional paid in capital after the quasi-reorganization on July 1 is:a. P 750,000b. P 2,000,000c. P 500,000d. P-0-3. Logan’s deficit after the quasi -reorganization on July 1,2011 should be:a. P 750,000b. P 250,000c.…
AB Corp had a net profit of CU400,000,000 and paid a dividend of CU200,000,000 during 19X7. AB Corp's shareholder equity as of December 31, 19X6 and December 31, 19X7 is as follows: 31 Desember 19x6 31 Desember 19x7 10% cumulative preference shares nominal Rp100,000 Rp300.000.000 300.000.000 Ordinary shares nominal Rp1,000 1.000.000.000 1.000.000.000 Additional paid-in capital 2.200.000.000 2.200.000.000 Retained earning 500.000.000 700.000.000 Shareholders' Equity 4.000.000.000 4.200.000.000 On January 2, 19X7, XY Corp purchases 400,000 shares of AB Corp common stock for CU4,000 per share and also pays CU50,000 in direct costs to acquire the investment. Required to determine (1) XY Corp's income from AB Corp in 19X7 and (2) the balance in the investment account with PT Somar as of December 31, 19X7.
The shareholders’ equity section of THANOS Company revealed the following information on December 31, 2021: Preference share, ₱100 par,₱2,300,000; share premium-preference, ₱805,000; ordinary share,₱15 par, ₱5,250,000; share premium-ordinary, ₱2,750,000; subscribed ordinary share,₱50,000; Accumulated profits and losses,₱1,900,000; and stock dividends payable-ordinary, ₱450,000. How much is legal capital? a. ₱ 5,750,000 b. ₱ 8,050,000 c. ₱ 8,000,000 d. ₱ 7,600,000