he following balances were taken from the books of Aquarius Corpor ordinary Share Capital (10,000 shares issued) = $850,000 ubscribed Ordinary Share Capital (5,000 shares) = $425,000 hare Premium Ordinary = P186,750

he following balances were taken from the books of Aquarius Corpor ordinary Share Capital (10,000 shares issued) = $850,000 ubscribed Ordinary Share Capital (5,000 shares) = $425,000 hare Premium Ordinary = P186,750

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 8PA: Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000...

See similar textbooks

Related questions

Q: National Company has 100,000 shares outstanding and just declared a 2-for-1 stock split. Before the…

A: Introduction: Stock split: Splitting of the share face value in to parts called as stock split.…

Q: Given the following: January 1 inventory April 1 June 1 November 1 Number purchased 34 54 44 Cost of…

A: The cost of goods sold refers to the direct costs of making products sold by a company (COGS). This…

Q: Pearson ACT-Sole Proprietorship - Google Chrome act.pearsoncmg.com/activity/2/2/2 #H Type here to…

A: As per accounting equation of the business, total assets must be equal to total liabilities and…

Q: 2) A purchase of equipment for $18 000 also involved freight charges of $500 and installation costs…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Creative Technology reports inventory using the lower of cost and net realizable value (NRV). Below…

A: As per IAS inventory to be valued at cost or NRV which ever is lower

Q: Purchases inventories on behalf of the joint venture, such as goods, felling rights and vacant…

A: When an entity purchases goods on behalf of its joint venture, it means that it has increased its…

Q: Calculate the cost of goods available for sale

A: The cost of the goods available for sale means the cost of the goods that remains after the sale of…

Q: Classify each of these items as an asset, liability, or equity. I need "Share Capital - Ordinary"…

A: Corporation- An organization that has been registered as a corporation under a corporation act has…

Q: Global Radio Company, which is trying to decide whether to introduce as a new product a wrist…

A: In the given question, first break-even point will be calculated. It is the point at which the sales…

Q: PA8-3 (Algo) Recording Notes Receivable Transactions [LO 8-3] C&S Marketing (CSM) recently hired a…

A: A record is often kept in the accounting records, but it can also be kept in a single account,…

Q: Which transaction would affect the calculation of the non-controlling interest in the consolidated…

A: Answer - Transaction 4: On 1 November 20X6, Parent borrowed $50 000 from Sub at an interest rate of…

Q: On January 1, 2022, P Company acquired 80% of S Company for P2,000,000. The fair value of…

A: Gross profit is the profit a company makes after deducting the costs of manufacturing, selling, and…

Q: The following items are taken from the financial statements of the Riverbed Service for the year…

A: The ending. balance of equity indicates the investment balance of the owner adjusting net income and…

Q: Which of the following firms are more likely to hold NFA A. A firm who operates in a competitive…

A: Net foreign assets (NFA) are the amount of total cumulative assets that are held by one entity doing…

Q: Accounting Consider a bank with 10M in shareholder equity. It has assets and liabilities according…

A: Shareholder equity (SE) is supplied by a company's net value, which is generated from the leftover…

Q: Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A car with a sticker…

A: INTRODUCTION: The term "annual percentage rate" (APR) describes the annual interest that is produced…

Q: While examining the December 31, 2010 financial statements of Dawn Company, the following errors…

A: The Question requires us to calculate corrected Net Income for the year ended December 31,2010.

Q: Andrea has a taxable income of $46,760 and does not have a spouse. What is Andrea's gross tax…

A: Gross tax refers to the amount which is determined grounded on the aggregate amount of money the…

Q: In Bonita Company Treasury Stock increased $20800 from a cash purchase, and Retained Earnings…

A: Lets understand the basics. Cashflow from financing activity activity include activity which deals…

Q: What is the profit per day of Machine A? 2. What is the profit per day of Machine B? 3. What…

A: When we have two alternatives and we have to select one alternative, then we compare both of the…

Q: A4. Continue or discontinue Example 2: Division Sales (1000£) Variable cost (1000£) Contribution…

A: Continue or Discontinue decision: When a company decides to temporarily halt production, this is…

Q: a. Fixed corporate costs are allocated on the basis of relative revenue. What is the target…

A: In the above question, Fixed costs are allocated on the basis of relative revenue. Therefore to…

Q: Mr Required information PA8-4 (Algo) Accounting for Accounts and Notes Receivable Transactions [LO…

A: Answer-solution in this question step2.

Q: Assignment Chirac & Partners is a Quebec based public accounting partnership specialising in audit…

A: Direct cost is the one which is allocated directly to the product and vice versa to this, indirect…

Q: d over the dwindling financial performance and precarious financial position of the Company. The…

A: Debt to equity ratio refers to the ratio which reflects the capacity of the company to finance or…

Q: Which of the following statements about a forged drawer's signature on a check is true? a.) A…

A: The answer for the multiple choice question and relevant working are presented hereunder : A check…

Q: John Waits owns a small shop with two employees. For one payroll period the total withholding tax…

A: Taxes are mandatory payments placed on individuals or businesses by a government agency, whether…

Q: Bond Company adopted the dollar-value LIFO inventory method on January 1, 2021. In applying the LIFO…

A: Under the dollar value LIFO method, the inventory at December 31, 2022, should be:

Q: You own 30,000 shares of National Corporation stock. The company is planning to issue a stock…

A: Calculation of Market value of shares owned after stock dividend Particulars Amount (P) Market…

Q: k Exercise 2-8 (Algo) Preparing journal entries LO A1 Following are the transactions of Sustain…

A: General Entries :— It is the First Step of keeping accounting records. When transaction occured it…

Q: estion 11. The left side of any account is always the debit side. The debit side is used to OA.…

A: Debit is always on the right of an account. On debit side, any asset is increas will be recorded and…

Q: Which of the following equations expresses the definition of “income”? Choices; Income = Revenues…

A: Revenues - It is the amount of money received through sale of goods and services . Gains - It is the…

Q: During the year 2021 a company earned P376,000 during a period when it had an average of 100,000…

A: Earnings per share= Net income for the year / No. of shares in average Incremental shares= {(Average…

Q: Assuming there is separate records maintained for the joint operation, compute for the Joint…

A: Joint venture is a business arrangement where 2 or more persons or entities agree to join hands for…

Q: Pharoah Company had the following records: 2022 2021 Ending inventory $42000 $30000…

A: In order to determine the average days in inventory, the total no. of days in a year are required to…

Q: What is the primary reason we perform physical inventory observations? A. To obtain sufficient…

A: Inventory : It is the stock of raw material work in process and finished goods Kept in the store for…

Q: 1. Purchased land for $275,000 cash. 2. Borrowed $275,000 from the bank on a long-term note. 3. Sold…

A: Cash Flow From Investing Activity: Purchase of Land ($275,000) Sale of the Long term…

Q: PA8-1 (Algo) Recording Accounts Receivable Transactions Using the Aging Method [LO 8-2] Grouch Mayor…

A: Allowance for Doubtful debt: Because it lowers the total value of an asset, in this example the…

Q: Jackson Corp. (a US-based company) sold parts to a Korean customer on December 16, 2021, with…

Q: G. From the following particulars, you are required to find out the errors in cash book and bank…

A: A bank reconciliation statement compares an entity's bank account to its financial records and…

Q: Carla Vista Co. receives a $60,400, 6-year note bearing interest of 7% (paid annually) from a…

A: We shall calculate the present value of Note by discounting all cash flows during the 6 year period.…

Q: National Company has 100,000 shares outstanding and just declared a 2-for-1 stock split. Before the…

A: This is a case of stock split. Hereby the shares already outstanding are split into 2 or more…

Q: You would like to make a direct comparison between Maligaya Co. and Masaya Inc. stocks. Maligaya and…

A: Book Value: Book value is the accounting worth of an organization's assets less any claims that have…

Q: ABC Company acquired all of XYZ Corporation's assets and liabilities on June 30, 20X1. XYZ reported…

A: Book value and fair value The book value is based on the old old purchase price, from which yearly…

Q: Compute the predetermined variable overhead rate and the predetermined fixed overhead rate Stevens…

A: Budgeted direct labor hours : =125,000 * 1 =125,000 hours Budgeted variable overhead given =437,500…

Q: Mark Goldsmith's broker has shown him two bonds issued by different companies. Each has a maturity…

A: As per our guidelines only first question of the 3 asked here can be solved. So here is the solution…

Q: 1. Purchased land for $275,000 cash. 2. Borrowed $275,000 from the bank on a long-term note. 3. Sold…

A: Cash flow statement was used to find the level of cash which was earned & spent for various…

Q: tA Assets Liabilities Owner's Equity $333,300 $212,000

A: Introduction: Balance sheet: All Assets and liabilities are shown in balance sheet. It tells the net…

Q: LoveDebt Ltd. has a target capital structure which consists of 60% of debt and 40% of equity. The…

A: Out of the profit earned by the business organizations, some of the profit is distributed to the…

Q: Find the exact interest on a loan of $8,000 at 8% annually for 60 days. $ (Round to the nearest cent…

A: Interest Amount = Amount of Loan x Interest Rate x Time (in years)

Question

Pisces Corporation was incorporated last August 1, 2020. It was authorized to issue 50,000 ordinary shares with
a par value of $40 per share. As of December 31, 2020, 45% of the authorized shares were issued at $50 per
share. Another 30% of the authorized shares were subscribed at par, to which the entire amount remains unpaid
at year-end. The balance of the authorized shares remains unissued and unsubscribed. How many shares were
unissued and unsubscribed as of December 31, 2020?

The following balances were taken from the books of Aquarius Corporation as of December 31, 2020:
Ordinary Share Capital (10,000 shares issued) = $850,000
Subscribed Ordinary Share Capital (5,000 shares) = $425,000
Share Premium - Ordinary = 186,750
Subscriptions Receivable - Ordinary = $205,450
Preference Share Capital (8,000 shares issued) = 840,000
Subscribed Preference Share Capital (2,200 shares) = 231,000
Share Premium - Preference = $87,500
Subscriptions Receivable - Preference = $106,450
a. Compute for legal capital, assuming ordinary shares are par value shares.

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.

Similar questions

Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
Winona Company began 2019 with 10,000 shares of 10 par common stock and 2,000 shares of 9.4%, 100 par, convertible preferred stock outstanding. On April 2 and June 1, respectively, the company issued 2,000 and 6,000 additional shares of common stock. On November 16, Winona declared a 2-for-1 stock split. The preferred stock was issued in 2018. Each share of preferred stock is currently convertible into 4 shares of common stock. To date, no preferred stock has been converted. Current dividends have been paid on both preferred and common stock. Net income after taxes for 2019 totaled 109,800. The company is subject to a 30% income tax rate. The common stock sold at an average market price of 24 per share during 2019. Required: 1. Prepare supporting calculations for Winona and compute its: a. basic earnings per share b. diluted earnings per share 2. Show how Winona would report the earnings per share on its 2019 income statement. Include an accompanying note to the financial statements. 3. Next Level Assume Winona uses IFRS. Discuss what Winona would do differently for computing earnings per share, and then repeat Requirement 1 under IFRS.
Tama Companys capital structure consists of common stock and convertible bonds. At the beginning of 2019, Tama had 15,000 shares of common stock outstanding; an additional 4,500 shares were issued on May 4. The 7% convertible bonds have a face value of 80,000 and were issued in 2016 at par. Each 1,000 bond is convertible into 25 shares of common stock; to date, none of the bonds have been converted. During 2019, the company earned net income of 79,200 and was subject to an income tax rate of 30%. Required: Compute the 2019 diluted earnings per share.
Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, 100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows: Part a. A shareholder has raised the following questions: 1. What is the legal capital of the corporation? 2. At what average price per share has the preferred stock been issued? 3. How many shares of common stock have been issued (the common stock has been issued at an average price of 23 per share)? Part b. The company engaged in the following transactions in 2019: Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.
Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares of 10%, 100 par, nonconvertible preferred stock outstanding, on which the years dividends had been paid. At the beginning of 2019, the company had 7,000 shares of common stock outstanding. On April 2, 2019, the company issued another 2,000 shares of common stock so that 9,000 common shares were outstanding at the end of 2019. Common dividends of 17,000 had been paid during 2019. At the end of 2019, the market price per share of common stock was 17.50. Required: 1. Compute Mononas basic earnings per share for 2019. 2. Compute the price/earnings ratio for 2019.
Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?
EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of $50 par value 6% preferred stock. It is also authorized to issue 1,750,000 shares of $1 par value common stock. In its fifth year, the corporation has the following transactions: Journalize the transactions.
Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000 shares of $100 par value 8% preferred stock. It is also authorized to issue 750,000 shares of $1 par value common stock. It has issued only 50,000 of the common shares and none of the preferred shares. In its seventh year, the corporation has the following transactions: Journalize these transactions.
Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000 shares of $100 par value 8% preferred stock. It is also authorized to issue 750,000 shares of $1 par value common stock. It has issued only 50,000 of the common shares and none of the preferred shares. In its sixth year, the corporation has the following transactions: Journalize these transactions.
Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000
Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
Paydirt Limestone, Incorporated was organized several years ago and was authorized to issue 3,000,000 shares of $40 par value 9% preferred stock. It is also authorized to issue 3,750,000 shares of $2 par value common stock. In its fifth year, the corporation has the following transactions: Journalize the transactions.