Item No. 3 is based on the following information:Howing ledLeon Corporation sold 500 shares of its P 40 par value preference sharesfor cash at P 50 per share.3. In recording this transaction, there would be a:23510HD 3a.Credit to Preference Share Capital for P 20,000.b. Credit to Preference Share Capital for P 25,000.open no bsand 21 I.oM mattCredit to Preference Share Capital in Excess of Stated Value for P 5,000.C.d. Credit to Subscribed Preference Share Capital for P 20,000.

Preference share capital includes such capital which is given preference in respect of receipt of…

Leon Corporation sold 500 shares of its P 40 par value preference shares for cash at P 50 per share. 3. In recording this transaction, there would be a: a. Credit to Preference Share Capital for P 20,000. b. Credit to Preference Share Capital for P 25,000. fors Credit to Preference Share Capital in Excess of Stated Value for P 5,000. al to matt C. d. Credit to Subscribed Preference Share Capital for P 20,000.

Leon Corporation sold 500 shares of its P 40 par value preference shares for cash at P 50 per share. 3. In recording this transaction, there would be a: a. Credit to Preference Share Capital for P 20,000. b. Credit to Preference Share Capital for P 25,000. fors Credit to Preference Share Capital in Excess of Stated Value for P 5,000. al to matt C. d. Credit to Subscribed Preference Share Capital for P 20,000.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 7EB: Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the...

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Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.
Alert Companys shareholders equity prior to any of the following events is as follows: The company is considering the following alternative items: 1. An 8% stock dividend on the common stock when it is selling for 30 per share. 2. A 30% stock dividend on the common stock when it is selling for 32 per share. 3. A special stock dividend to common shareholders consisting of 1 share of preferred stock for every 100 shares of common stock. The preferred stock and common stock are selling for 123 and 31 per share, respectively. 4. A 2-for-1 stock split on the common stock, reducing the par value to 5 per share (assume the same date for declaration and issuance). The market price is 30 per share on the common stock. 5. A property dividend to common shareholders consisting of 100 bonds issued by West Company. These bonds are carried on the Alert Company books as an available-for sale investment at a fair value of 48,000 (which is also its cost); it has a current value of 54,000. 6. A cash dividend, consisting of a normal dividend and a liquidating dividend, on both the preferred and the common stock. The 10% preferred dividend includes a 2% liquidating dividend, and the 2.30 per share common dividend includes a 0.30 per share liquidating dividend (separate liquidating dividend contra accounts should be used). Required: For each of the preceding alternative items: 1. Record (a) the journal entry at the date of declaration and (b) the journal entry at the date of issuance. 2. Compute the balances in the shareholders equity accounts immediately after the issuance (any gains or losses are to be reflected in the retained earnings balance; ignore income taxes).
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