Do not give answer in image (Lump-Sum Sales of Ordinary and Preference Shares) Hartman SE issues 500 shares of €10par value ordinary shares and 100 shares of €100 par value preference shares for a lump sum of €100,000.Instructionsa. Prepare the journal entry for the issuance when the fair value of the ordinary shares is €168 each andfair value of the preference shares is €210 each. (Round to the nearest euro.)b. Prepare the journal entry for the issuance when only the fair value of the ordinary shares (€170 pershare) is known.

The journal entries are prepared to record the transactions on regular basis. The lump sum received…

Answered: (Lump-Sum Sales of Ordinary and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Nash SE issues 500 shares of €10 par value ordinary shares and 100 shares of €100 par value preference shares for a lump sum of €121,000. (a) Prepare the journal entry for the issuance when the fair value of the ordinary shares is €164 each and fair value of the preference shares is €205 each. (b) Prepare the journal entry for the issuance when only the fair value of the ordinary shares (€212 per share) is known.
Sintok Niaga Bhd issues 40,000 shares at RM1 each during the year ended 31 December 2019. The applications are received with full payment on October 31, 2019 for 100,000 shares. The shares are subsequently allotted on December 31, 2019 to the successful applicants, while unsuccessful applicants are refunded at the same date. Show the journal entries to record the transactions. Sintok Niaga Bhd had the following transactions pertaining to its ordinary shares during the first year of operations. Jan 10 Issued 80,000 shares for cash at RM6 per share. Mar 1 Issued 5,000 shares to lawyer in payment of a bill for RM40,000 for services rendered in helping the company to incorporate. July 1 Issued 30,000 shares for cash at RM8 per share. Sep 1 Issued 60,000 shares for cash at RM10 per share. REQUIRED: Prepare the journal entries to record the transactions.
Pupil, Inc. prepares this journal entry on June 30, 2019. Issued ordinary share capital for P140/share. DR Cash P70,000 CR Ordinary share capital P65,000 CR Ordinary share premium P5,000. How many shares were issued? Using data above, what is the par value per share for this share capital?
On 1 January 20x0, Entity A enters into a forward contract to buy 1,000 of its own ordinary shares on 31 March 20x1 at a fixed price of $18 per share. The contract are net settled in cash. On 31 December 20x0, the market price per share was $24. On 31 March 20x1, the market price per share was $22. Required: Prepare journal entries for 1 January and 31 December in 20x0 and 31 March in 20x1.
On June 30, 2019, Haiti Company has 200,000 shares of P10 par ordinary share outstanding and the market price of the share is P12 per share. On the same date, the company declared a 1 for 2 share split. Immediately before the split, the total share premium was P900,000. What should be the balance in Haiti’s Share Premium account after the share split is effected?
a) JH Bhd issued 20,000 redeemable preference shares for RM20,000 cash on 24 August 2020. Dividend payment is mandatory at 10 sen per share. Redemption is discretionary. The current borrowing cost of the company is 8%. Required: i) Determine the liability component and the equity component of the redeemable preference shares. ii) Provide two other types of preference shares which can be treated as compound financial instrument. b) In a rights offer, AY Bhd issued 500,000 ordinary shares at a price of RM2.00 per share for cash. As a package with the rights issue, the company also issued 500,000 free warrants. The warrants entitle shareholders to subscribe for ordinary shares at an exercise price of RM2.50 per share within two years of the issue. The fair value of the ordinary shares and warrants at the date of issue are RM1.60 and RM0.40 respectively. Required: Explain how AY Bhd should account for the proceeds from rights issue with free warrants and the subsequent exercise of…
The company issued for P1,200,000 cash, 4,000 shares of P200 par value Preference share and 1,000 shares of P100 ordinary share. The preference and ordinary share have fair values of P220 and P120 per share, respectively on the date of sale. Record the transaction above in journal entry form.
Journalize. Analyze and journalize the following transactions. On July 1, Sarangani Marketing Corporation is authorized to issue 10,000 ordinary shares at P100 par value per share. On July 2, 2020 the six (6) incorporators have subscribed to 2,500 shares at par value and paid P62,500 of the subscription. Other transactions follow: July 16 Neria Asperga subscribed to 100 ordinary shares and made down payment of P4,500. 18 Narvin La'chica subscribed to 100 ordinary shares. Elizabeth Palma Gil, one of the incorporators, paid her subscription balance in full and a share certificate for 200 shares was issued: 200 shares subscribed at P100 Less: 25% subscription payment Balance P 20,000 5,000 P 15,000 25 Received cash of P35,000 from the incorporators as partial payment of their subscription balances. 30 31 Neria Asperga paid the subscription balance in full and a share certificate is issued.
1. ABC Co purchases 10,000 XYZ Inc., shares for P100 per share on April 9, 20x1. On March 31, 20x1, XYZ Inc. declares cash dividend of P8 per share to shareholders of record on April 15, 20x1. The dividends will be distributed on April 31, 20x1. The investment is measured at FVPL. Requirement: Prepare Journal Entries on April 9 and April 30, 20x1. 2. ABC Co purchases 10,000 XYZ Inc. shares for P100 per share on April 27, 20x1. On March 31, 20x1, XYZ Inc. declares cash dividend of P8 per share to shareholders of record on April 15, 20x1. The dividends will be distributed on April 31, 20x1. The investment is measured at FVPL. Prepare Journal Entries on April 9 and April 30, 20x1. Requirement: Prepare Journal Entries on April 27 and April 30, 20x1. 3. ABC Co holds 10,000 shares of XYZ Inc. as Investment in equity securities. On April 1, 20x1, ABC Co receives land with accost of P1,000,000 and fair value of P1,300,000 as property dividend. Requirement: Prepare Journal Entries on April1. 4.…
Virma Corporation sold to a subscriber 500 shares of its P30 par value common stock at P32 per share receiving a 30% down payment. In recording this transaction, A. Ordinary share will be credited in the amount of P15,000 B. Ordinary share will be credited in the amount of P16,000 C. Subscribed share capital will be credited in the amount of P15,000 D. Share premium will be credited in the amount of P4,500 Leon Corporation sold 500 shares of its P40 par value preferred stock for cash at P50 per share. In recording this transaction, there would be a A. Credit to preference share capital for P25,000 B. Credit to preference share capital for P20,000 C. Credit to subscribed preference share capital for P20,000 D. Credit to share capital in excess of stated value for P5,000 Luningning Corporation sold for cash 400 shares of preferred stock with a par value of P50 per share at P56 per share. Also, 600 shares of common stock with no…
4. ABC Co. issued a prospectus for the issue of 900,000shares at $6 per shares on 1 January 2019. The prospectus specified that $3.50 was payable on application, a further $1.25 was payable on allotment and the final $1.25 was payable at call. On 31 January 2019 ABC issued 300,000 shares. On 31 May 2019, the company made the call for the outstanding balance of $1.25 per share. The call was payable by 30 June 2019. At 30 June 2019, the call on 30,000 shares remained unpaid. Instructions: a) Prepare the journal entries to account for the issue of shares for ABC and b) The Share Capital that would appear in the Balance Sheet of ABC Co.
4. ABC Co. issued a prospectus for the issue of 900,000shares at $6 per shares on 1 January 2019. The prospectus specified that $3.50 was payable on application, a further $1.25 was payable on allotment and the final $1.25 was payable at call. On 31 January 2019 ABC issued 300,000 shares. On 31 May 2019, the company made the call for the outstanding balance of $1.25 per share. The call was payable by 30 June 2019. At 30 June 2019, the call on 30,000 shares remained unpaid.Instructions:a) Prepare the journal entries to account for the issue of shares for ABC andb) The Share Capital that would appear in the Balance Sheet of ABC Co.

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