For the current year, Work-From-Home Company received a donation of 3,000 shares with a par value of P20 from the shareholder. The market value of the share was P150. The shares were originally issued P50 per share. As a result of the donation, what was the decrease in the shareholder’s equity?

For the current year, Work-From-Home Company received a donation of 3,000 shares with a par value of P20 from the shareholder. The market value of the share was P150. The shares were originally issued P50 per share. As a result of the donation, what was the decrease in the shareholder’s equity?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 1BCRQ

See similar textbooks

Related questions

Q: Laker Company reported the following January purchases and sales data for its only product. Units so...

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for y...

Q: Data for Barry Computer Co. and its industry averages follow. The firm’s debt is priced at par, so t...

A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the quest...

Q: The company you cofounded last year isgrowing rapidly and has strong prospects for an IPO inthe next...

A: Financial statements that describe the operations and cash flows performance of a company. Governmen...

Q: [The following information applies to the questions displayed below.] Felix & Company reports the fo...

A: The costs are classified as fixed and variable costs. The high low method is used to separate the fi...

Q: n June 30, 2021, Line Company incurred a P100,000 net loss from disposal of a business segment. Also...

A: Solution: Determination of net income or loss for the six-month interim period is based on the incom...

Q: During the month of May 20--, The General’s Favorite Fishing Hole engaged in thefollowing transactio...

Q: production cost report is an accounting report that describes the physical flow of units, equivalent...

A: Solution: Process costing is the technique in which costs are accumulated over a fixed period of tim...

Q: Presented below is selected information pertaining to the Cone Company: § Cash balance, January 1,...

A: Solution: As per basic accounting equation: Total Assets = Total liabilities + Capital Ending Capita...

Q: F2 Use the following information for questions 20-23: You are provided with the following informatio...

A: Net Income =Total Revenue -Total Expense. Income Statement Sales 56800 Less: Cost of goods sol...

Q: An investment of 500 will increase to 4000 at the end of 20 years. Find the sum of the present value...

A: solution working note calculation of interest rate PV * (1+interest) ^20 =FV 500 * (1+ in...

Q: Customer return and refund On December 28, 20Y3, Silverman Enterprises sold $18,500 of merchandise t...

Q: n January 2021, ABC Inc. paid property taxes on its factory building for the calendar year 2021 in t...

A: Solution: Property taxes is for whole year, therefore same should be recognized equally in each quar...

Q: Popoy is a messenger of Basha Logistics. He receives a monthly salary of P25,000. At the end of the ...

A: computation of taxable income of Mr. Popoy for the year particulars Amount (PHP) Basic salar...

Q: An analyst has compiled the following information relating to a company for the year ended 31 Decemb...

A: Return on equity (ROE)=Net Profit after taxTotal Shareholder's Equity at year-end×100

Q: A jeans maker is designing a new line of jeans called Slams. Slams will sell for $320 per unit and c...

Q: 25

A: The time between an injury and the receipt of benefit payments is referred to as the elimination per...

Q: Taehyung Company provided the following data: On January 1, the company’s account receivable and acc...

A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are inc...

Q: Managerial accounting is different from financial accounting in that

A: Managerial accounting is the branch of accounting which deals with the forecasting, predictions or m...

Q: nciples (GAAP) and are audited by CPA firms. Do investors need to worry about the validity of those ...

A: GAAP = generally accepted accounting principles When CPA firms are audited they take all types of me...

Q: An asset was purchased and installed for $277,685. The asset is classified as MACRS 7-year property....

A: Depreciation: Generally speaking, the word "depreciation" refers to an accounting process that is us...

Q: On May 7, 2021, Permission to Dance (PTD) Corporation sold a tract of land for P70,000 that resulted...

A: The correct answer for the above mentioned answer is given in the following steps for your reference...

Q: DEL GATO CLINIC Bank Reconciliation June 30 Bank statement balance Book balance Add: Add: Deduct: De...

A: Bank reconciliation statement is prepared where an entry which is found in one book (Cash book or ba...

Q: HW Chapter 18 S22 Q3. Use this information for the next two questions. Mobco Inc. allows customers o...

A: Sale is a transaction between two parties in which one buys the goods and one sold the goods in exch...

Q: The following data relate to store equipment of BBB Company for 2021: · Store Equipment at ...

A: Store Equipment at cost, Jan. 1- P100,000 Store Equipment at cost, Dec. 31- P105,000 Accumulated...

Q: If the insurance plan where the insurance firm promises to make yearly payments of 200,000 pesos sta...

A: Annual payment = 200,000 pesos Interest rate = 6% Period from 11th year to 15th year = 5 Periods

Q: Entity A publishes quarterly interim financial reports. Entity A’s annual depreciation for items of...

A: As per IAS 2, Inventories are to be measured at lower of cost or Net realizable value.

Q: A company uses a periodic inventory system. The beginning inventory was $20,000, purchases amounted...

A: The cost of goods sold is the total amount your company paid as a cost directly related to the sale ...

Q: Conclude and explain, with reference to the IPPF (code of ethics or standards) whether it is permiss...

A: Here given the details of the Professional codes and conduct which are insisted by the International...

Q: Bank reconciliation using: a. Bank to book method; b.Book to bank method; and c.Adjusted balance met...

A: 1. Bank reconciliation using: a. Bank to book method

Q: Cash received from long-term notes payable Purchase of investments Cash dividends paid Interest paid...

A: The cash flow statement is prepared to record the cash flow from various activities during the inclu...

Q: Required information Use the following information for the Exercises below. [The following informati...

A: The inventory can be valued using various methods as LIFO, FIFO, weighted average and specific ident...

Q: Under the accrual basis, Professional Fees by Atty. Bruno for the year 2021 amounts to A. 3,059,100...

A: Accrual system of accounting says that every thing which is accrued has to be provided in books of a...

Q: One such issue is the Sale with Right of Return. Discuss how do you recognize revenue when the custo...

A: Revenue Recognition: Revenue recognition is a bookkeeping rule that states that income should be per...

Q: Everlast Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentag...

A: Prime cost means the addition of direct material and direct labor and other direct expenses. Manufac...

Q: Yellow Company reported the following information in 2021: · Sales revenue- P500,000 · ...

A: Comprehensive income statement: It is a financial statement that represents standard net income and ...

Q: PROBLEM NO.1- Composition of cash and cash equivalents The following data pertain to PRTC Corporatio...

A: Computation of the cash and cash equivalents to be reported on the entity's December 31 2018 stateme...

Q: SALES AND CASH RECEIPTS TRANSACTIONS Sourk Distributors is a retail business. The following sales, r...

A: Journal Book is prepared for recording all business day-to-day transactions. In Journal all transact...

Q: Austin Corporation issues $6,000,000 of 10%, 10-year bonds, dated December 31, Year 1. The bonds are...

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder. ...

Q: Instructions On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond ...

A: Solution A journal is a company's official book in which all business transaction are recorded in ch...

Q: ABC Company acquired a fire insurance on Nov. 1, 2021. The company paid P12,000 for the said annual ...

A: Total insurance for the year = P12000 Period covered in current year = 2 Months (i.e. Nov.1 to Dec 3...

Q: For the current year, Work-From-Home Company received a donation of 3,000 shares with a par value of...

A: As per PFRS Treasury stock and a gain or revenue account are increased by the market value of the st...

Q: Sizzle Company shareholders' equity at the beginning of 2010 is shown at the table below: value, aut...

A: The treasury stock includes the shares that are repurchased from the shareholders.

Q: Delicious Dinners (DD) is a business entity which offers online cooking classes. Customers pay an an...

A: Intangible assets are assets involving intellectual properties like patents, trademarks, customer li...

Q: Use the following information to prepare, in good form, an income statement, a statement of changes ...

A: An income statement is a statement that shows the income and expenses of a company. It also shows w...

Q: Which of the following statements is correct? Group of answer choices The annual report contains ...

A: Annual Report: When a corporation publishes an annual report, it provides an in-depth look at its op...

Q: The following information has been obtained for Sheridan Corporation. 1. Prior to 2020, taxable inco...

A: Introduction:- Individuals or enterprises (taxpayers) pay an income tax depending on their earnings ...

Q: Below are DCI & Co.’s transactions for the third quarter: · Payment of quick response insuran...

A: Solution: Insurance premium is for whole year, therefore it should be recognized equally in each qua...

Q: Taehyung started operating a service proprietorship on April 1, 2021 with an initial cash investment...

A: Under cash basis of accounting, business transactions are recorded in books of accounts only when ca...

Q: Kulver's Inc. sponsored a defined benefit plan in 2020. Plan assets had a January 1, 2020, balance a...

A: A journal entry is the process of recording or maintaining track of any financial or non-financial a...

Q: A principal of $2000 is placed in a savings account at 3% per annum compounded annually. How much i...

A: >There can be two instances of interest payment and accrual:#1: Simple interest, where interest i...

Question

For the current year, Work-From-Home Company received a donation of 3,000 shares with a par value of P20 from the shareholder. The market value of the share was P150. The shares were originally issued P50 per share. As a result of the donation, what was the decrease in the shareholder’s equity?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.