On December 1, DOS Corporation issued 1,000 shares of its par ordinary share capital and 2,000 shares of its P10 par preference share capital for a lump sum of ₱ 40,000. At this date, ordinary share is selling for ₱18 per share and the preference share for ₱13.50 per share. How much should the “Ordinary Share Capital” account be credited?

Q: On March 1, 20X5, Rya Corp. issued 1,000 shares of its $20 par value common stock and 2,000 shares…

A: Step 1: Compute the total market value.

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: During its first year of operations, LEBANON COMPANY entered into the following transactions…

A: Ordinary shares or common shares are stocks sold on a public exchange by a company. It gives the…

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: On July 1, 2018, Nokia Corporation issued 1,000 P10 par ordinary shares and 2,000 P10 par…

A: Share capital is the amount invested by the owners of the business.

Q: During the year, Fabi Corporation issued 10,000 ordinary shares with P100 par value and 20,000…

A: Equity: It is the amount shareholder invested in the company. This is the difference between total…

Q: On June 30, 2021 Jungkook Company issued 1,000 of P10 par ordinary shares and 2,000 of P10 par…

A: Issue value of preference shares = Lumpsum price x Total market value of preference shares / Total…

Q: On April 1, 2XX1, Globe Corporation, a newly formed company, had the following share capital issued…

A: A) Ordinary share capital:- The amount of Ordinary share capital for Globe Corporation             =…

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

A: Here allocations  should  be done on basis of fair value/ market  value

Q: During the year, BFAR Corp. completed the following transactions related to its treasury shares:…

A: Share premium includes the amount which is computed if the shares are purchased or sold at the…

Q: At the beginning of the current year, Relay Company was organized and authorized to issue 100,000…

A: Shareholders equity is the amount that the owner has invested in the business including retained…

Q: On December 1, 2019, ANNA Corporation issued 1,000 shares of its P10 2 points par ordinary share…

A: The allocation of aum sum issue amount is given by  Ai = Mi/M * C Where Ai = amount allocated to…

Q: . What amount should be recognized as share premium at year-end? 5. What is the total shareholders’…

A: It is the statement that provides the movement of the owner's balance from the beginning to the end…

Q: Helu Corporation was organized on January 1, with an authorization of 1,000,000 ordinary shares with…

A: Shares of the company can be issued at par value or value more than par value or less than par…

Q: A company issues 500 shares of $10 par value common stock and 200 shares of $100 par value preferred…

A: The lump-sum amount is allocated to the common stock and preferred stock on the basis of the market…

Q: XYZ Corporation is authorized to issue 150,000 ordinary shares with par of P150. On June 1 eight…

A: Statement of Profit and Loss Account The purpose of preparing the statement of profit and loss to…

Q: Sunland Company has issued 1,900 shares of common stock and 380 shares of preferred stock for a lump…

A: The stock in which shareholder’s are entitled to received dividend whose amount may vary from time…

Q: OSE Corporation's articles of incorporation provides for the issuance of 100,000 ordinary shares.…

A: The dividend is the distribution of the portion of profit earned by the company. The dividend is…

Q: XYZ Corporation is authorized to issue 150,000 ordinary shares with par of P150. On June 1 eight…

A:

Q: On July 1, 2010, Bettina Company’s board of directors declared a 10% share dividend. The market…

A: The dividend is declared from the retained earnings of the business. The dividend can be paid in the…

Q: The Hillside Corporation has an authorized shares of 250,000 with a par value of Php70. 100,000…

A: Share capital is considered as a part of capital which is issued by the company as shares. Shares is…

Q: On July 1, 2010, Bettina Company's board of directors declared a 10% share dividend. The market…

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

Q: Holiday, Inc. had the following transactions in the ordinary shares of May Corporation: January 5…

A: Bonus issue means additional shares are issued by the company to the current shareholders free of…

Q: Celestial Inc. issued 8,000 shares of its P10 par ordinary shares to a CPA for 600 hrs. of…

A: The company's main source of funding is its share capital. There are two sorts of shares. Ordinary…

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: On June 30, 2021 BANANA Company issued 1,000 of P10 par ordinary shares and 2,000 of P10 par…

A: The question is based on the concept of Financial Accounting.

Q: On September 30,2107, Maling Company issued 3,000 shares of its P10 par value ordinary share in…

A: Retained earnings can be referred to as those earnings which are kept aside by the company after…

Q: Venus Company issued 20,000 shares of its P70 par value ordinary shares and 8.000 shares of its P80…

A: Solution: Fair value of common stock issued = 20000*80 = P1,600,000 Fair value of preferred stock…

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: During its first year of operations, LEBANON COMPANY entered into the following transactions…

A:

Q: Helu Corporation was organized on January 1, with an authorization of 1,000,000 ordinary shares with…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

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: Pat issued 1,000 shares of its P5 par value ordinary shares to Nenita a compensation for 1,000 hours…

A: Share premium refers to the amount that is determined from the difference shares face or par value…

Q: On July 1, 2018, Nokia Corporation issued 1,000 P10 par ordinary shares and 2,000 P10 par…

A: Share capital is the amount raised by issuing ordinary/common or preference shares by the company.…

Q: On July 1, 2022, BFAR Corp. declared and issued 25% share dividend to its ordinary shareholders.…

A: Share dividend means the issue of dividend in the form of shares rather than in the form of cash.…

Q: At the beginning of the current year, BFAR Corp. was authorized to issue 100,000 shares with P50 par…

A: The retained earnings increases with revenue and decreases with losses during the period. The…

Q: Al Anwar Company has 10,000 shares authorized, OMR2 par value, 4,000 shares issued and outstanding…

A: Preference shares are that type of shares which have pre-determined rate of dividend. The company…

Q: nary shares with a par value of P10 per share. During the current year, the entity had the following…

A: Solution: Share premium is the amount which is in excess of par value of ordinary shares. It also…

Q: ABC Ltd., has part of its share capital as 10,000 Redeemable Preference Shares of Rs. 100 each. When…

A: Journal entries are used to record the transactions of business during its operations and it…

Q: On April 1, Kang Corporation purchased back 250 shares of $1 par value common stock for $20 per…

A: Treasury stock: When shares are purchased from the open market by the company then these shares are…

Q: The Justice Corporation is authorized to issue 500,000 shares of ordinary share capital with a…

A: A Journal entry is a primary entry that records the financial transactions initially. The…

Q: BFAR Corp. was authorized to issue 300,000 P7 par value ordinary shares. It received subscriptions…

A: Subscribed share capital is the shares that have been subscribed by the investors. These may be paid…

Q: At the beginning of the current year, Bella Company was organized and authorized to issue 100,000…

A: The shareholders' equity section displays all the capital, income or losses that belongs to…

Q: On December 1, DOS Corporation issued 1,000 shares of its ₱10 par ordinary share capital and 2,000…

A: The organization can raise funds for the operation song integrity by issuing common stock, preferred…

Q: LAVENDER Corporation issued 20,000 shares of its ₱70 par value ordinary share capital and 8,000 of…

A: Formula: Preference share capital = Number of shares issued x PAR Value of each preference share.

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: During its first year of operations, LEBANON COMPANY entered into the following transactions…

A: Shares can be exchanged for cash or issued in exchange for anything other than cash. The term "issue…

Q: A shareholder owns 15,000 shares costing P3,000,000. Subsequently, the shareholder receives notice…

A: Gain on sale refers to the amount which is made through company while selling the shares for more…

Q: When incorporated Y Ltd. Issued 2,000 common shares to A for dollar 2,000. In year 2, Y Ltd. issued…

A: The paid up capital is defined as the component of called up capital that is actually reimbursed…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.