Evon, a limited liability company, issued 1,000,000 ordinary shares of 25 cents each at a price of $1.10 per share, all received in cash. What should be the accounting entries to record this issue? A Debit: Cash $1,100,000 Credit: Share capital $250,000 Credit: Share premium $850,000 B Debit: Share capital $250,000 Debit: Share premium $850,000 Credit: Cash $1,100,000 C Debit: Cash $1,100,000 Credit: Share capital $1,100,000 D Debit: Cash $1,100,000 Credit: Share capital $250,000 Credit: Retained earnings $850,000

Q: Oriole Company has issued 2,500 shares of common stock and 500 shares of preferred stock for a lump…

A: Common stock and Preference stock are two types of stock or shares that is being issued by the…

Q: Coolsys Corporation issued 30,000 shares of no-par value ordinary shares for €29.50 per share. Which…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: The following capital accounts are shown in the statement of financial position of George…

A: Amount debited to accumulated profit and losses account = Cost of treasury stock - Sale value of…

Q: Hanson Co. issued 10,000 shares of its $5 par common stock for $15 a share. In addition, it incurred…

A: Journal entry for recording issuance of shares is Debit Cash and Credit Common Stock and Credit…

Q: On September 14, 10,000 shares of Grey Company are acquired at a price of $100 per share plus a $500…

A: Journal is the basic recording book in accounting. It is the primary book of entry for recording…

Q: Familia Ltd. purchased from its shareholders 5,000 shares of its own previously issued shares for…

A: Purchase price of Treasury stock : = $ 250000/5000 shares = $ 50

Q: The League Corporation is authorized to issue 100,000 shares of Ordinary Share Capital with a par…

A: Journal entries are the modern accounting method in which all business transaction recorded in a…

Q: During its first year of operations, LEBANON COMPANY entered into the following transactions…

A: Ordinary shares or common shares are stocks sold on a public exchange by a company. It gives the…

Q: A companys share capital consists of 3 million ordinary shares of RO 1 each, issued at a premium of…

A: Ordinary shares capital = No. of rdinary shares issued x Par value per share = 3,000,000 shares x RO…

Q: The following are capital stock transactions of the BBC Corporation. Apr. 1 - Authorized to issue…

A: Journal Entry :- A journal entry is the act of recording any transaction, whether one that is…

Q: At the beginning of the current year, Relay Company was organized and authorized to issue 100,000…

A: Shareholders equity is the amount that the owner has invested in the business including retained…

Q: On January 20, HK Corporation was formed with the capital of 100.000 TL by issuing 100.000 shares of…

A: Given that: Shares issued = 100,000 Value at which shares issued = 121,000 Commission = 1000 When…

Q: During its first year of operations, LEBANON COMPANY entered into the following transactions…

A: Equity Capital - Share capital and equity finance are other names for equity capital. It is referred…

Q: A. Fernando Corporation is authorized to issue 40,000 shares of P85 par value ordinary shares.…

A: Common stock issued by the company should always be recorded at par value. Value above than par…

Q: LAVENDER Corporation issued 20,000 shares of its ₱70 par value ordinary share capital and 8,000 of…

A: Total market value of preferrence shares = No. of preferrence shares x market value per share =…

Q: Baldecir Tours, Inc., is authorized to issue 220,000 shares of no-par ordinary shares, P15 stated…

A: Ordinary shares are very important source of finance for the business. If ordinary shares are issued…

Q: PAPAYA Corporation is authorized to issue ₱1,000,000 share capital dividend into 10,000 shares with…

A: solution given Number of authorized shares 10000 Par  value of shares 100 Number of…

Q: The League Corporation is authorized to issue 100,000 shares of Ordinary Share Capital with a par…

A: Journal Entry :- The purpose of preparing the journal entry to segregate the transaction which are…

Q: The following capital accounts are shown in the statement of financial position of George…

A: Profit and loss account is an account which records incomes and expenses of the business. It tells…

Q: A. Fernando Corporation is authorized to issue 400,000 shares of P85 par value ordinary shares.…

A: Given that, Fernando Corporation is authorized to issue 400,000 shares Par value per share = P85

Q: On June 23, 200C, Pinoy Trading owned and operated by Phil was incorporated. On this date, the…

A: Shareholders equity is one of the important element of balance sheet of the business. It means total…

Q: On June 30, HK Corporation was formed with the capital of 200.000 TL by issuing 200.000 shares of…

A: Unpaid capital Unpaid capital is the capital which the company has raised by issuing of shares or…

Q: Smart Poly Machine issues 5,000 shares of 5%, $10 Par Value Preferred Stock for $10,000 cash,…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: CFAS Corporation was organized on January 1, with an authorization of 1,000,000 ordinary shares with…

A: share premium account is created when there is the difference in the par value or face value of the…

Q: Jomel Corporation has 10,000 shares of Ordinary share capital authorized, P 30 par of which 6,000…

A: Total amount charged to Retained Earnings account=Shares Outstanding×11×Face Value

Q: On June 23, 200C, Pinoy Trading owned and operated by Phil was incorporated. On this date, the…

A: As stated in the query Phil's Pinoy Trading, which he owns and operates, was incorporated on June…

Q: une 23, 200C, Pinoy Trading owned and operated by Phil was incorporated. On this date, the balance…

A: In basic accounting equation the total assets must be equal to total equity and total liabilities…

Q: Patience Co. was authorized to issue 400,000 ordinary shares with a stated value of P20.   The…

A: Share capital is considered as the portion of capital that is arisen from the investors. When an…

Q: Hopeful Ltd. had issued​ 500,000 shares at a nominal value of 25p each when it commenced business.…

A: Answer: Correct option is A. Share capital £​187,500, and Share premium £​125,000.

Q: he following accounts are shown on the statement of financial position of Phoenix Corporation…

A: Treasury stocks are, generally, those stocks that are bought back from their own shareholders. It…

Q: Give the journal entries of the following: Received payments in full for half of the share…

A: The following transactions are journalized as per the information given.

Q: ABC Corporation issues 5,000 ordinary shares with a $50 par value for cash at $55 per share. The…

A: At the time of issue of shares, any amount received over and above par value of shares is known as…

Q: Ravonette Corporation issued 300 shares of $10 par value ordinary shares and 100 shares of $50 par…

A:

Q: The charter of Zion Associates provides for the issuance of 100,000 shares of common stock. Assume…

A: The charter shows the authorized number of shares which in this case is 100000 shares. Subsequently…

Q: MJH Company issued 1000 shares of stock with a stated value of $10 per share for $17,000.  The entry…

A: Issue of common stock is very important source of raising money from public. When stock is issued at…

Q: A corporation sold 9,500 shares of its $10 par value common stock at a cash price of $11 per share.…

A: >Issuance of common stock is one of the Financing activity from which the corporation gets Cash…

Q: Simon Corporation is authorized to issue 4,000,000 shares of P4 par value ordinary shares. The…

A: Stockholders' equity= Equity share capital + retained earnings - treasury shares  Or  All assets -…

Q: At the beginning of the current year, Bella Company was organized and authorized to issue 100,000…

A: The shareholders' equity section displays all the capital, income or losses that belongs to…

Q: On June 23, 200C, Pinoy Trading owned and operated by Phil was incorporated. On this date, the…

A: Corporation is one of the legal form of business organisation, under which several members invest…

Q: LAVENDER Corporation issued 20,000 shares of its ₱70 par value ordinary share capital and 8,000 of…

A: Formula: Preference share capital = Number of shares issued x PAR Value of each preference share.

Q: On June 23, 200C, Pinoy Trading owned and operated by Phil was incorporated. On this date, the…

A: Corporation is a legal form of business organisation, under which members invest money or capital in…

Q: If Kiner Company issues 1,000 shares of P5 par value common stock for P7o,000, the account Common…

A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…

Q: During the current year, the entity had the following organized and authorized to issue 100,000…

A: Treasury shares means the share which has been buy back by the company . It will be shown as…

Q: During its first year of operations, LEBANON COMPANY entered into the following transactions…

A: Shares can be exchanged for cash or issued in exchange for anything other than cash. The term "issue…

Q: The correct Journal entry needed to record the issue of 200,000 $1 shares at a premium of 30p, and…

A: We have the following information: Number of shares: 200,000 shares Issued at $1 per share at a…

Q: The following capital accounts are shown in the statement of financial position of George…

A: Amount debited to accumulated profit and losses account = Cost of treasury stock - Sale value of…

Q: Taylor Corporation issues 20,000 shares of $50 par value preferred stock for cash at $90 per share.…

A: Issue price of preferred stock=Number of Shares×Issue price=20,000×$90=$1,800,000

Q: When incorporated Y Ltd. Issued 2,000 common shares to A for dollar 2,000. In year 2, Y Ltd. issued…

A: The paid up capital is defined as the component of called up capital that is actually reimbursed…

Q: The authorized share capital of the Alfred Cake Company is 120,000 shares. The equity is currently…

A: a. The book shows a balance of common stock of $69,000. The number of shares issued is calculated…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.