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Noelle Company began operations on January 1. Authorized were 120,000 shares of P10 par value ordinary shares and 240,000 shares of 10%, P100 par value preference shares. The following transactions involving shareholders' equity occurred during the first year of operations: Jan 1 Issued 30,000 ordinary shares to the corporation promoters in exchange for land valued at P1,020,000 and services valued at P420,000. The property had cost the promoters P540,000 three (3) years before and was carried on the promoters' books at P300,000. Feb 23 Issued 60,000 preference shares with a par value of P100 per share. The shares were issued at a price of P150 per share, and the company paid P450,000 to an agent for selling the shares. Mar 10 Sold 18,000 ordinary shares for P390 per share. Issue costs were P150,000. 24,000 ordinary shares were sold under share subscriptions at P450 per share. No shares are issued until full payment of a subscription contract. No cash was received as a down payment. Apr 10 July 14 Exchanged 4,200 ordinary shares and 8,400 preference shares for a building with a fair value of P3,060,000. In addition, 3,600 ordinary shares were sold for P1,440,000 in cash. Aug. 3 Received payments in full for half of the share subscriptions and payments on account on the rest of the subscriptions. Total cash received was P8,400,000. Share certificates were issued for the subscriptions paid in full. Dec 31 Net income for the first year of operations was P3,600,000. Declared a cash dividend of P10 per share on preference shares and P20 per share on ordinary shares, payable on February 10 to shareholders of record on January 15. Dec 31 Based on the preceding information: a. Prepare journal entries to record each transaction(

Noelle Company began operations on January 1. Authorized were 120,000 shares of P10 par value ordinary shares and 240,000 shares of 10%, P100 par value preference shares. The following transactions involving shareholders' equity occurred during the first year of operations: Jan 1 Issued 30,000 ordinary shares to the corporation promoters in exchange for land valued at P1,020,000 and services valued at P420,000. The property had cost the promoters P540,000 three (3) years before and was carried on the promoters' books at P300,000. Feb 23 Issued 60,000 preference shares with a par value of P100 per share. The shares were issued at a price of P150 per share, and the company paid P450,000 to an agent for selling the shares. Mar 10 Sold 18,000 ordinary shares for P390 per share. Issue costs were P150,000. 24,000 ordinary shares were sold under share subscriptions at P450 per share. No shares are issued until full payment of a subscription contract. No cash was received as a down payment. Apr 10 July 14 Exchanged 4,200 ordinary shares and 8,400 preference shares for a building with a fair value of P3,060,000. In addition, 3,600 ordinary shares were sold for P1,440,000 in cash. Aug. 3 Received payments in full for half of the share subscriptions and payments on account on the rest of the subscriptions. Total cash received was P8,400,000. Share certificates were issued for the subscriptions paid in full. Dec 31 Net income for the first year of operations was P3,600,000. Declared a cash dividend of P10 per share on preference shares and P20 per share on ordinary shares, payable on February 10 to shareholders of record on January 15. Dec 31 Based on the preceding information: a. Prepare journal entries to record each transaction(

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 2MC: Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions...
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Noelle Company began operations on January 1. Authorized were 120,000 shares of P10 par value ordinary shares and 240,000 shares of 10%, P100 par value preference shares. The following transactions involving shareholders' equity occurred during the first year of operations: Issued 30,000 ordinary shares to the corporation promoters in exchange for land valued at P1,020,000 and services valued at P420,000. The property had cost the promoters P540,000 three (3) years before and was carried on the promoters' books at P300,000. Jan 1 Feb 23 Issued 60,000 preference shares with a par value of P100 per share. The shares were issued at a price of P150 per share, and the company paid P450,000 to an agent for selling the shares. Mar 10 Sold 18,000 ordinary shares for P390 per share. Issue costs were P150,000. Apr 10 24,000 ordinary shares were sold under share subscriptions at P450 per share. No shares are issued until full payment of a subscription contract. No cash was received as a down payment. July 14 Exchanged 4,200 ordinary shares and 8,400 preference shares for a building with a fair value of P3,060,000. In addition, 3,600 ordinary shares were sold for P1,440,000 in cash. Aug. 3 Received payments in full for half of the share subscriptions and payments on account on the rest of the subscriptions. Total cash received was P8,400,000. Share certificates were issued for the subscriptions paid in full. Dec 31 Net income for the first year of operations was P3,600,000. Dec 31 Declared a cash dividend of P10 per share on preference shares and P20 per share on ordinary shares, payable on February 10 to shareholders of record on January 15. Based on the preceding information: a. Prepare journal entries to record each transaction
Transcribed Image Text:Noelle Company began operations on January 1. Authorized were 120,000 shares of P10 par value ordinary shares and 240,000 shares of 10%, P100 par value preference shares. The following transactions involving shareholders' equity occurred during the first year of operations: Issued 30,000 ordinary shares to the corporation promoters in exchange for land valued at P1,020,000 and services valued at P420,000. The property had cost the promoters P540,000 three (3) years before and was carried on the promoters' books at P300,000. Jan 1 Feb 23 Issued 60,000 preference shares with a par value of P100 per share. The shares were issued at a price of P150 per share, and the company paid P450,000 to an agent for selling the shares. Mar 10 Sold 18,000 ordinary shares for P390 per share. Issue costs were P150,000. Apr 10 24,000 ordinary shares were sold under share subscriptions at P450 per share. No shares are issued until full payment of a subscription contract. No cash was received as a down payment. July 14 Exchanged 4,200 ordinary shares and 8,400 preference shares for a building with a fair value of P3,060,000. In addition, 3,600 ordinary shares were sold for P1,440,000 in cash. Aug. 3 Received payments in full for half of the share subscriptions and payments on account on the rest of the subscriptions. Total cash received was P8,400,000. Share certificates were issued for the subscriptions paid in full. Dec 31 Net income for the first year of operations was P3,600,000. Dec 31 Declared a cash dividend of P10 per share on preference shares and P20 per share on ordinary shares, payable on February 10 to shareholders of record on January 15. Based on the preceding information: a. Prepare journal entries to record each transaction
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