On February 1, 2020, SEC authorized TINY INC. to issue 100,000 shares with par value of P10 per share. On February 3, 2020, TINY received subscriptions for 25,000 shares at par. TINY collected 35% on such subscriptions on February 4, 2020. On February 10, 2020, TINY received full payment on 5,000 shares originally subscribed and thereafter issued share certificates for 5,000 shares. Under the journal entry method of accounting for share capital transactions, how would TINY journalize the issuance of shares on February 10, 2020? a. Subscribed Share Capital 32,500 Share Capital 32,500 b. Subscribed Share Capital 32,500 Unissued Share Capital 32,500 c. Subscribed Share Capital 50,000 Share Capital 50,000 d. Subscribed Share Capital 50,000 Unissued Share Capital 50,000
On February 1, 2020, SEC authorized TINY INC. to issue 100,000 shares with par value of P10 per share. On February 3, 2020, TINY received subscriptions for 25,000 shares at par. TINY collected 35% on such subscriptions on February 4, 2020. On February 10, 2020, TINY received full payment on 5,000 shares originally subscribed and thereafter issued share certificates for 5,000 shares. Under the journal entry method of accounting for share capital transactions, how would TINY journalize the issuance of shares on February 10, 2020? a. Subscribed Share Capital 32,500 Share Capital 32,500 b. Subscribed Share Capital 32,500 Unissued Share Capital 32,500 c. Subscribed Share Capital 50,000 Share Capital 50,000 d. Subscribed Share Capital 50,000 Unissued Share Capital 50,000
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
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
Related questions
Question
100%
On February 1, 2020, SEC authorized TINY INC. to issue 100,000 shares with par value of P10 per share. On February 3, 2020, TINY received subscriptions for 25,000 shares at par. TINY collected 35% on such subscriptions on February 4, 2020. On February 10, 2020, TINY received full payment on 5,000 shares originally subscribed and thereafter issued share certificates for 5,000 shares.
Under the a. Subscribed Share Capital 32,500
Share Capital 32,500
Share Capital 32,500
b. Subscribed Share Capital 32,500
Unissued Share Capital 32,500
Unissued Share Capital 32,500
c. Subscribed Share Capital 50,000
Share Capital 50,000
Share Capital 50,000
d. Subscribed Share Capital 50,000
Unissued Share Capital 50,000
Unissued Share Capital 50,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College