During May 1, 20x1, Yami Inc. issued 90,000 of its P10 par value ordinary shares for P1,080,000. Net income through December 31, 20x1 was P102,500.On July 3, 20x2, Yami issued 150,000 of its ordinary shares for P1,950,000. A 5% share dividend was declared on October 2, 20x2, and issued in November 6, 20x2, to shareholders of record on October 23, 20x2.The market value if the ordinary shares was P11 per share on the declaration date. Yami’s net income for the year ended December 31, 20x2 was P220,000.During 20x3, Yami had the following transactions:In February, Yami reacquired 9,000 of its ordinary shares of P9 per share. Yami uses the cost method to account for treasury shares.In June, Yami sold 4,500 of its treasury shares for P13 per share.In September, each shareholder was issued for each share held one (1) right to purchase two (2) additional ordinary shares for P13 per share. The rights expire on December 31, 20x3.In October, 75,000 rights issues were exercised when the market value of the ordinary share was P14 per share.In November, 120,000 rights were exercised when the market value of the of the ordinary share was P15 per share.On December 10, Yami declared its first cash dividend to shareholders of P0.25 per share, payable, on January 10, 20x4, to shareholders of record on December 31, 20x3.On December 22, in accordance with the applicable law, Yami formally retired 3,000of its treasury shares and had them revert to an unissued basis. The market value of the ordinary shares was P16 per share on this date.Net income for 20x3 was P270,000. REQUIRED:Prepare Journal Entries Ordinary share capital balance on December 31, 20x3 =Share premium – ordinary shares on December 31, 20x3 =Retained Earnings balance on December 31, 20x3 =Treasury shares balance on December 31, 20x3 =

1) Journal Entries Date Particulars No of share Debit Credit Retained Earning May-20x1 Bank…

Answered: During May 1, 20x1, Yami Inc. issued…

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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During May 1, 20x1, Yami Inc. issued 90,000 of its P10 par value ordinary shares for P1,080,000. Net income through December 31, 20x1 was P102,500.

On July 3, 20x2, Yami issued 150,000 of its ordinary shares for P1,950,000. A 5% share dividend was declared on October 2, 20x2, and issued in November 6, 20x2, to shareholders of record on October 23, 20x2.The market value if the ordinary shares was P11 per share on the declaration date. Yami’s net income for the year ended December 31, 20x2 was P220,000.

During 20x3, Yami had the following transactions:

In February, Yami reacquired 9,000 of its ordinary shares of P9 per share. Yami uses the cost method to account for treasury shares.
In June, Yami sold 4,500 of its treasury shares for P13 per share.
In September, each shareholder was issued for each share held one (1) right to purchase two (2) additional ordinary shares for P13 per share. The rights expire on December 31, 20x3.
In October, 75,000 rights issues were exercised when the market value of the ordinary share was P14 per share.
In November, 120,000 rights were exercised when the market value of the of the ordinary share was P15 per share.
On December 10, Yami declared its first cash dividend to shareholders of P0.25 per share, payable, on January 10, 20x4, to shareholders of record on December 31, 20x3.
On December 22, in accordance with the applicable law, Yami formally retired 3,000of its treasury shares and had them revert to an unissued basis. The market value of the ordinary shares was P16 per share on this date.
Net income for 20x3 was P270,000.

REQUIRED:

Prepare Journal Entries
Ordinary share capital balance on December 31, 20x3 =
Share premium – ordinary shares on December 31, 20x3 =
Retained Earnings balance on December 31, 20x3 =
Treasury shares balance on December 31, 20x3 =

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