Gates Corp. received a donation of 2,000 shares of its P5 par value ordinary shares from a shareholder. On that date, the share's fair value was P35 per share. The share was originally issued for P25 per share. By what amount would this donation cause total shareholders' equity to decrease?

Q: Hamilton Boats issued 175,000 shares of its no-par common stock to Sudoku Motors in exchange for…

A: Common stock  are the ordinary shares issued by a company to the public in return of share of…

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Q: Yüksel A.Ş., of which our company had previously purchased and was a 20% shareholder, made a profit…

A: Retained Earning            Dr       30000    To Dividend Payable                          30000…

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A:

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Q: 36. A company received 3,000, P10 par ordinary shares from one of its shareholders. In the same year…

A: Here discuss about the details of donated share capital which are received from the shareholders in…

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A: "Since you have asked multiple questions, we will solve the first question for you". If you want any…

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…

Q: On December 1, 2010, Gates Corp. received a donation of 2,000 shares of its P5 par value ordinary…

A: Calculation of amount of donation:: Shares issued for donations::2000.. Fair  value of shares at the…

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A: A non-profit organization (NPO) is one that is not motivated by financial gain. They are not formed…

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A: Here employee stock options with two  alternative  to employees  either  to take cash equivalent  to…

Q: On December 1, 2019, Bobcat Corporation received a donation of 2,000 shares with P 50 par value from…

A: Shareholder’s equity to decrease by = (market value per share - share issue price per share) x No.…

Q: On December 31, 2020, DEF Co. was registered at SEC with 100,000 authorized ordinary shares of P100…

A: 1. Total No. of shares issued = 40,000 shares   Value of Shares = 40,000 Shares x P100 = P4000,000…

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…

Q: Elizabeth Corporation decided to issue 2,000 share options to an employee in exchange of years of…

A: Shares: Shares can be defined as the securities that reflect the ownership in the hands of the…

Q: A company received 3,000, P10 par ordinary shares from one of its shareholders. In the same year the…

A: Donated capital is that part of equity which represents the fair value of an asset or security.

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A: Dividend income shall be Fair market value of securities less amount of loan still encumbered on…

Q: On December 1, 2019, Bobcat Corporation received a donation of 2,000 shares with P 50 par value from…

A: Shareholder’s equity to decrease by = (market value per share - share issue price per share) x No.…

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A: Employee Stock Option Plan- An employee benefits program that grants employees a stake in the…

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A: Financial reporting is the process of documenting and communicating financial operations and…

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A: Tax free Distribution Tax free distribution which implies that shareholders of the business entity…

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A: Here ABC's group grant 3000 Share option to their Senior executive in Year 4 upon the condition that…

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A: Fixed assets refer to those assets which are not held for sale purposes by the business. These are…

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 January 1, Year 1, Lasagna Corporation granted to an employee the right to choose either shares…

A: All amounts are in (P).

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A: The total shareholder's equity shall be decreased by the amount which was received by the Line Corp.…

Q: On December 31, 2020, Melon Co. was registered at SEC with 100,000 authorized ordinary shares of…

A: Par value of ordinary shares issued = No. of ordinary shares issued x Par value per share = 40,000 x…

Q: On January 1, Year 1, Lasagna Corporation granted to an employee the right to choose either shares…

A: This question is related to Employee stock options plans commonly known as ESOPs. ESOPs are a kind…

Q: CFAS Company received a donation of 2,000 shares of its P5 par value ordinary shares from a…

A: Given information, No of shares received =2,000 Issue price =P25 Par value =P5 Fair value =P35…

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

A: The calculation for the above question is given in the following steps for your reference.

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A: Shares represents the capital of the company and the shareholders are considered as the owners of…

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A: Present value refers to the current valuation for a future sum. Investors determine the present…

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

A: Donation of stock simply refers to the transfer of ownership of stock to a charitable institution…

Q: First Link Services granted 5.8 million of its $1 par common shares to executives, subject to…

A: In the given case, the fair value of the stock to be granted is determined. Then a contra entry is…

Q: On January 1, 2018, Permission to Dance Inc. grants to an employee the right to choose either 1,000…

A: Phantom Stock: It is an employee benefit plan where selected employees will be provided with…

Q: On January 1, Year 1, Lasagna Corporation granted to an employee the right to choose either shares…

A: Fair value at year 3 = P65  No.of Shares for cash alternative = 20000 shares Par value per share =…

Q: 1. A company received 3,000, P10 par ordinary shares from one of its shareholders. In the same year…

A: Donated capital refers to the assets provided to the entity as the gift, this amount is reported at…

Q: For the current year, Spiderman Company received a donation of 3,000 shares with a par value of P20…

A: Shareholders Equity: Shareholders' equity (also known as corporate net worth) is a measure of how…

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

A: This question deals with the FAS 116 " Accounting for contribution received and contribution made".…

Q: On December 1, 2019, Bobcat Corporation received a donation of 2,000 shares with P 50 par value from…

A: Shareholder’s equity to decrease by = (market value per share - share issue price per share) x No.…

Q: CFAS Corporation issued 5,000 ordinary shares of P100 par value in Exchange for a land. Based on the…

A: General Journal Debit Credit Land P7,50,000             Common Stock (5000 shares * P100)…

Q: ILA Company agreed to pay $850,000 cash and issue 50,000 shares of its $10 par (20 current fair…

A: Step 1 In business combination, when the number of shares is issued, they are generally issued   at…

Q: On December 1, 2019, Ceniza corporation received a donation of 3,000 shares of its P50 par value…

A: The shares can be of two types common shares and preferred shares. The common shares…

Q: A shareholder owns 15,000 shares costing P3,000,000. Subsequently, the shareholder receives notice…

A: Gain on sale refers to the amount which is made through company while selling the shares for more…

Q: On December 1, 2016, Buggy Corporation received a donation of 2,000 shares of its P50 par value…

A: Introduction:- The following information should understand for calculations:- December 1, 2016,…

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.