On June 17, the Lattern Company issued 120,000 shares of its $0.10 par value common share in exchange for land. On the date of the transaction, the fair value of the common share, evidenced by its market price, was $10 per share. The journal entry to record this transaction includes ______.
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A: Option C is the Correct Answer i.e ₱ 1,700,000.
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- On October 17, ORANGE Company issued 15,000 shares of its ₱100 par ordinary share in acquiring a land that has a fair value of ₱ 1,700,000 during that date. The ordinary share is actively selling at ₱120 per share. On December 31, the land has a fair value of ₱2,100,000. At what amount should the Land be recorded in the books of Orange?On October 17, CORAL Company issued 15,000 shares of its ₱100 par ordinary share in acquiring a land that has a fair value of ₱ 1,700,000 during that date. The ordinary share is actively selling at ₱120 per share. On December 31, the land has a fair value of ₱2,100,000. At what amount should the Land be recorded in the books of CORAL?On October 17, CORAL Company issued 15,000 shares of its ₱100 par ordinary share in acquiring a land that has a fair value of ₱ 1,700,000 during that date. The ordinary share is actively selling at ₱120 per share. On December 31, the land has a fair value of ₱2,100,000. At what amount should the Land be recorded in the books of CORAL? ₱ 1,800,000 ₱ 1,500,000 ₱ 1,700,000 ₱ 2,100,000
- On October 17, ORANGE Company issued 15,000 shares of its ₱100 par ordinary share in acquiring a land that has a fair value of ₱ 1,700,000 during that date. The ordinary share is actively selling at ₱120 per share. On December 31, the land has a fair value of ₱2,100,000. What is the amount of share premium to be credited on the issuance of shares?On April 5, Fenning Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for 30,000 shares of $80 par common stock valued at $112 per share. Journalize the entry to record the transaction.On April 10 a company acquired land in exchange for 2,500 shares of $23 per common stock with a current market price of $74. Journalize this transaction.
- On February 22, Triangle Corporation acquired 34,000 shares of the 500,000 outstanding common stock of Jupiter Co. at $25 plus commission charges of $680. On June 1, a cash dividend of $1.70 per share was received. On November 12, 7,000 shares were sold at $31 less commission charges of $100. At the end of the accounting period on December 31, the fair value of the remaining 27,000 shares of Jupiter Company’s stock was $25.52 per share. d. Using the cost method, journalize the entry for the change in fair value. If an amount box does not require an entry, leave it blank.Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a tradinginvestment for £13,200. During the year, Sherman paid a cash dividend of £3.25 per share. Atyear-end, Sherman shares were selling for £34.50 per share.Prepare Fairbanks' journal entries to record:(a) the purchase of the investment,(b) the dividends received, and(c) the fair value adjustment.Oolong’s Corporation has an investment in 10,000 shares of Chiatze Company ordinary share with a cost of P436,000. These shares are used in a property dividend to shareholders of Oolong’s. The property dividend is declared on May 25 and scheduled to be distributed on July 31 to shareholders of record on June 15. The fair value per share of Chiatze share is P63 on May 25, P66 on June 15, and P68 on July 31. The net effect of this property dividend on retained earnings is a reduction of a.P680,000 b.P630,000 c.P660,000 d.P436,000
- Adams Moving and Storage, a family-owned corporation, declared a property dividend of 2,000 shares of GE common stock that Adams had purchased in February for $94,000 as an investment. GE’s shares had a market value of $45 per share on the declaration date. Prepare the journal entries to record the property dividend on the declaration and payment dates. Record adjustment of stock to fair value. Record the journal entry on the declaration date. Record the journal entry on the payment date.On January 1, Paisley, Inc., paid $560,000 for all of Skyler Corporation’s outstanding stock. This cash payment was based on a price of $180 per share for Skyler’s $100 par value preferred stock and $38 per share for its $20 par value common stock. The preferred shares are voting, cumulative, and fully participating. At the acquisition date, the book values of Skyler’s accounts equaled their fair values. Any excess fair value is assigned to an intangible asset and will be amortized over a 10-year period. During the year, Skyler sold inventory costing $60,000 to Paisley for $90,000. All but $18,000 (measured at transfer price) of this merchandise has been resold to outsiders by the end of the year. At the end of the year, Paisley continues to owe Skyler for the last shipment of inventory priced at $28,000. Also, on January 2 Paisley sold Skyler equipment for $20,000 although it had a carrying amount of only $12,000 (original cost of $30,000). Both companies depreciate such property…At the beginning of the current year, Lemon Company purchased 40% of the outstanding ordinary shares of an investee paying ₱2,560, 000 when the carrying amount of the net assets of the investee equaled ₱5,000,000. The difference was attributed to building which had a carrying amount of ₱1,000,000 and a fair market value of ₱1,600,000, and to machinery with a carrying amount of ₱1,200,000 and fair market value of ₱2,000,000. The remaining useful life of the machinery and building was 4 years and 12 years, respectively. During the current year, the investee reported net loss of ₱1,600,000 and paid dividends of ₱1,000,000. What is the carrying amount of the investment in associate at year end? A. ₱1,420,000 B. ₱ 1,270,000 C. ₱ 2,700,000 D. ₱ 2,550,000