On May 3, 20x3, Goyo exchanged 1,000 treasury shares (P50 par value ordinary shares) for a parcel of land to be used as a site for a new factory. The treasury shares had a cost of P70 per share when it was acquired. On May 3, 20x3, it had a fair market value of P80 per share. Goyo received P4,000 when an existing building on the land was sold for scrap. The land was capitalized at P80,000, and Goyo recorded a gain of P10,000 on the sale of its treasury shares. You found the following journal entries in the books: Cash 4,000 Miscellaneous Income 4,000
On May 3, 20x3, Goyo exchanged 1,000 treasury shares (P50 par value ordinary shares) for a parcel of land to be used as a site for a new factory. The treasury shares had a cost of P70 per share when it was acquired. On May 3, 20x3, it had a fair market value of P80 per share. Goyo received P4,000 when an existing building on the land was sold for scrap. The land was capitalized at P80,000, and Goyo recorded a gain of P10,000 on the sale of its treasury shares. You found the following journal entries in the books: Cash 4,000 Miscellaneous Income 4,000
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
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 1MC
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On May 3, 20x3, Goyo exchanged 1,000 treasury shares (P50 par value ordinary shares) for a parcel of land to be used as a site for a new factory. The treasury shares had a cost of P70 per share when it was acquired. On May 3, 20x3, it had a fair market value of P80 per share. Goyo received P4,000 when an existing building on the land was sold for scrap. The land was capitalized at P80,000, and Goyo recorded a gain of P10,000 on the sale of its treasury shares.
You found the following
Cash 4,000
Miscellaneous Income 4,000
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