JKL:o. issued 20,000 shares of its P25 par value ordinary shares and 4,000 shares of its P50 par value preference shares for a total of P350,000 cash and an equipment with acquisition cost of P900, 000, book value of P450, 000 and fair value of P500, 000. On that date, the fair value of ordinary shares is P30. How much is allocated to the preference shares?

Q: Inn Corporation had 30,000 ordinary shares of NPA Company which were acquired during Year 2 for a…

A: Number of bonus shares = 30000 x 20%= 6000 shares Number of shares as on December 31, Year 3 =…

Q: Tiktok Company issued 10,000 shares of its P5 Par value common stock having market value of P25 per…

A: Solution:- Calculation of the how much allocated to the common stock as follows under:-

Q: BFAR Corp. has ordinary share capital with par value of P50, and preference share capital with par…

A: The balance of the Share Premium account at the end of the year is P490,000.

Q: Sampaguita is authorized to issue P1,000,000 share capital divided into 10,000 shares with P100 par.…

A: In the given question, the company has issued shares above the par value. Any amount received over…

Q: Relay Company is permitted to issue 500,000 ordinary shares of P10 par value. During the first year…

A: Contributed Capital is the total amount contributed by the owners and also includes  shares premium.…

Q: CFAS Company issued 100,000, P50 par value, ordinary shares and 20,000, P100 par value, preference…

A: Share premium is an excess value of proceeds over the par value of the share. It can be calculated…

Q: The entity received P7, 580,000 cash from the issuance of its 9%, 3-year P8, 000,000 par value…

A: Preference Share- Preferred stock (also called preferred shares, preference shares, or simply…

Q: ABC Corporation provided you the following information on January 01, 2021:   Share capital, P10…

A: Company means a form of business where the share holder invest money in business in form of shares…

Q: LEE Company had the following amounts in the shareholders’ equity on January 1, 2020: Preference…

A: Accumulated Profits are part of net income that is not distributed to the equity shareholders at the…

Q: Jackson Corporation has planned Initial Public Offering Issue of 200,000,000 Ordinary shares which…

A: The question is based on the trading  strategy of stock in market . Trading is  buying and selling…

Q: Andam Corporation has outstanding 60,000 shares of 5% preference shares with a P50 par value and…

A: Dividend on Preference shares = Par Value of Preference Shares x Preference Dividend rate Dividend…

Q: Use the following information in answering the next item(s): FORGIVENESS INC. is authorized to issue…

A: When the shares of a company are issued at a price above and over the face value, it is said to be…

Q: A piece of equipment is acquired by an entity by issuing 10,000 shares of P10 par ordinary shares.…

A: Cost of the equipment =List price - Trade discount - Cash discount where, Cash discount = (List…

Q: COMBO Co. issued 20,000 shares of its P25 par value ordinary shares and 4,000 shares of its P50 par…

A:

Q: A piece of equipment is acquired by an entity by issuing 10,000 shares of 10 par ordinary shares.…

A: Cost of the equipment =List price - Trade discount - Cash discount where, Cash discount = (List…

Q: The company issued for P1,000,000 cash, 1,000 shares of P200 par value Preference share and 2,000…

A: The value received in excess of par value is credited to share premium account.

Q: Victory Company issued 8,000 ordinary shares with P200 par value and 20,000 preference shares with…

A: Market value of ordinary shares = no. of  ordinary shares x Selling value per share = 8000*360 =…

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: What amount of the proceeds should be allocated to the preference share capital?

A: Given information is A company issued 20,000 shares of its P70 par value ordinary share capital and…

Q: 1. Garnett Company was organized on January 1, 2020 with authorized capital of 100,000shares of P200…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: Z Ltd allotted one million shares of 50 cents each, as 35 cents called up per share, requiring an…

A: Share allotment :           From the authorized shares of the company which is mentioned in the MOA…

Q: Venus Company issued 20,00O shares of its P70 par value ordinary shares and 8,000 shares of its P80…

A: Market value of Ordinary shares = No. of Ordinary shares  x Market value per share = 20000 shares x…

Q: Buggy Corporation received a donation of 2,000 shares of its P50 par value ordinary shares from a…

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

Q: An entity provided the following shareholders' equity at year-end: 10% cumulative preference share…

A: Book value per share measures the book value of the firm per share and represent the minimum value…

Q: ABC Company was organized on January 1, 2022 with 100,000 authorized shares of P100 par value.…

A: Share premium account shows the difference between the par value of shares issued and the issue…

Q: On January 1, 2023, Japan Company acquired 50,000 shares of David Company ordinary shares for a…

A: Preference shares are those shares whose holders are having priority over the common ordinary shares…

Q: The entity received P7,580,000 cash from the issuance of its 9%, 3-year P8,000,000 par value…

A: The shares on which the dividend is paid before equity shares and the ones preferred at the time of…

Q: ABC Corp acquired a lot by issuing 20,000 shares. Par value of shares was P10/share and quoted price…

A: A Journal is made to record all the business transactions in chronological order. It is the first…

Q: ABC Co. issued 20,000 shares of its P10 par value ordinary share and 40,000 shares of its P10 par…

A: Value of common stock =20000 ×$20                         =$400,000 Value of convertible preference…

Q: Mall Company issued 60.000, P50 par value, ordinary shares and 20.000, P100 par value, preference…

A: Solution: Fair market value of ordinary shares = 60000*P100 = P6,000,000 Fair market value preferred…

Q: On 1 January 2020, the company "A" S.A. had a common share capital of 2,000,000€, differences from…

A: Date Particulars Amount in Dr. Amount in Cr. 1/5/2020 Ordinary Share Capital A/c    To Bank A/c…

Q: ABC Corporation provided you the following information on January 01, 2021:   Share capital, P10…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: Inn Corporation had 30,000 ordinary shares of NP which were acquired during Year 2 for a total…

A: Introduction Equity investments are measured at initial recognition in the beginning and at fair…

Q: Sheffield Corp. issues 5100 shares of its $10 par value common stock having a fair value of $30 per…

A: Fair value of common stock = 5,100*$30 Fair value of common stock = $153,000   Fair value of…

Q: Fblue acquired land with a fair value of P10,500,000 and paid for it in full by issuing P50 par…

A: The par value of shares means the value that is stated by the company at the time of the issue. The…

Q: Ball Company issued 50,000 shares of its P100 par ordinary and 80,000 shares of its P50 convertible…

A: Formula: Preference share capital = PAR value x Number of shares issued

Q: Fiona Company issued 21,500 ordinary shares with par value of P85 in exchange for land with a fair…

A: The amount of ordinary share premium is equal to the consideration received in excess of the par…

Q: ABC Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares…

A: Legal capital is the par value of common stock and preferred stock that the business had sold or…

Q: Jackson Corporation has planned Initial Public Offering Issue of 200,000,000 Ordinary shares which…

A: Initial public offering refers to the first public offer made by a public company in order to…

Q: Bulla Company issues 4,000 shares of its P5 par value ordinary share having a fair value of P25 per…

A: Based on the given data, Fair value of Common Stock = 4,000 x P25 = P100,000 Fair value of Preferred…

Q: Black Bulls Corp. Issued 10,000 shares of its P10 par value shares for a building. The building has…

A: Non current assets: These includes all the long term assets that are tangible in nature and having…

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: Aira Company issued rights to subscribe to its stock, the ownership of 4 shares entitling the…

A: Right Shares: As the name suggests, a rights issue is a way for current shareholders to buy…