On October 17, 2021, LILAC Corporation exchanged 20,000 shares of its ₱200 par value stock for land. A few months ago, the land was appraised by an independent appraiser at ₱5,000,000. The land had an initial cost of ₱4,500,000. LILAC is currently trading at the stock exchange at ₱300. How much should be credited to Share Premium upon the issuance of the shares?
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- Prepare general journal entries for the following transactions, identifying each transaction by letter: (a) Gnu Company issued 5,000 shares of 1 par common stock to the Prendergas law firm as partial payment of fees incurred to incorporate the business. Gnu was short of cash, so Prendergas agreed to accept 10,000 cash and the shares of common stock in full settlement of its bill for 55,000. (b) Gnu issued 50,000 shares of 1 par common stock in exchange for a parcel of land for building a shopping plaza. (The list price for the land was 400,000; a similar parcel in the same area sold last week for 380,000. During the past month, the price at which Gnus common stock has traded on the open market has ranged from 5 to 12 per share. Two trades occurred yesterday at 7 and 10 per share.) (c) Gnu purchased 10,000 shares of 1 par value common treasury stock for 70,000. (This is the only treasury stock that Gnu holds.) (d) Gnu sold 4,000 shares of common treasury stock for 32,000. (e) Gnu sold 5,000 shares of common treasury stock for 30,000.On October 17, 2021, LILAC Corporation exchanged 20,000 shares of its ₱200 par value stock for land. A few months ago, the land was appraised by an independent appraiser at ₱5,000,000. The land had an initial cost of ₱4,500,000. LILAC is currently trading at the stock exchange at ₱300. How much should be credited to Share Premium upon the issuance of the shares? Choose answer, either a or b. Show solution in good accounting form. a.) ₱ - 0 - b. ) ₱ 2,000,0003 At December 21, 2020, BFAR Corp. had 20,000 treasury shares that had been reacquired in 2020 at PHP 14 per share. These shares have a par value of PHP 8 per share. In May 2021, the company re-issued 4,000 of these treasury shares at PHP 10 per share. On December 31, 2021, how much should be the amount of appropriation of accumulated profits from the above transactions, under the cost method?
- On July 1, 2018, Jones Corporation, a new corporation, issued 40,000 shares of its common stock to finance a corporate headquarters building. The building has a fair market value of Rs. 1,200,000 and a book value of Rs. 800.000. Because Jones is a new corporation, it is not possible to establish a market value for its common stock. Prepare journal entries to record the issuance of stock for the building, assuming the following conditions: (1) the par value of the stock is Rs. 10 per share; (2) the stock is no-par stock; and (3) the stock has a stated value of Rs. 4 per share,Can I ask the solution to this problem? In good accounting form. Thank you. Edguy Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares of P10 par value at P15 per share. The entity was authorized to issue 400,000 ordinary shares. During the period January 1, 2019 through December 31, 2020, the entity reported net income of P750,000 and paid cash dividend of P380,000. On January 5, 2020, the entity purchased 12,000 ordinary shares at P12 per share. On December 31, 2020, 8,000 treasury shares were sold at P8 per share and the remaining treasury shares were retired. The entity used the cost method of accounting for treasury shares. What amount should be reported as total shareholders' equity on December 31, 2020?Integrity Company is a publicly held company whose shares are traded in the over-the-counter market. The shareholders’ equity accounts at December 31, 2021 had the following balances (see image below).Transactions during 2022 and other information relating to shareholders’ equity accounts were as follows: February 1: Issued 30,000 ordinary shares to AAA Company in exchange for a piece of land. On this date, the ordinary share had a market price of P20 per share. The land had a carrying value on AAA's books of P420,000 and an assessed value for property taxes of P400,000. March 1: Purchased 5,000 of its own ordinary shares to be held as treasury for P24 per share. May 10: Declared property dividend (equity investments at fair value through profit or loss) to ordinary shareholders. The investments had a carrying amount of P600,000 as of December 31, 2021 and fair values were P720,000 on May 10, 2021 (declaration date) and P736,000 on June 1, 2022 (distribution date). October 1: Reissued…
- In business, the capital factor is the pivotal part and the capital structure must be followed as per the law. In accordance with Oman Commercial Companies Law, Star Win SAOG Registered its capital of OMR 6,000,000 which was divided into 6,000,000 shares of OMR 1 each. The company had an issue of paid-up capital OMR 3 million with no arrears. In the year 2021, the company came up with an IPO of 2 million shares. The company received an application for 2.5 million shares. The company finalized the allotment on 2,000,000 shares and rejected the excess applications. The business called up 80% of its face value amount for the allotted shares. The company received entire call amount except for 5000 shares, the shareholders who failed to pay the call money. Evaluate this situation of the above company, Calculate the amount of different categories of share capital and prepare the abstract of SFOP by showing only Share capital for the year 2021.For several years Fister Links Products has held shares of Microsoft common stock, considered by the company to be securities available-for-sale. The shares were acquired at a cost of $500,000. Their fair value last year was $610,000 and is $670,000 this year. At what amount will the investment be reported in this year’s balance sheet? What adjusting entry is required to accomplish this objective?Can you also answer this? The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information. a. Issued 40% shares of class A common stock. Stock has par value of $45 per share and was issued at $62 per share. b. Issued 40% shares of no-par class B stock. (Issue price is at $60.00) C. Issued 30% shares of preferred stock at par value (Par value - $125). d. Exchanged 40% shares of class A common stock…
- There are some owners who are desirous about comparing many financial transactions and possible outcomes to assist in their decision-making process. These individuals assumes that the business will be formed around January 1st, 2019, and that Hraesvelgr Company’s charter will authorize about 1000000 shares of common stock and 400000, $100 par value, 5% cumulative preferred stock. Issued 15000 shares of common stock. Stock has par value of $0.10 per share and was issued at $30 per share. Issued 5000 shares of preferred stock at par value as payment in exchange for legal services. Exchanged 120,000 shares of common stock for land with an appraised value of $300,000 and a building with an appraised value of $500,000. Earned Net Income $600,000 Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Answer the following questions: Prepare the journal entries with narrations to record the following: insurances of stock, close out net income to retained…The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information. Issued 60%shares of class A common stock. Stock has par value of $48.00 per share and was issued at $105.00 per share. (Please refer to table below and use only the info in line with your first name initial in the blank/underlined space). Issued 60%shares of no-par class B stock. Issue Price $98.00 Issued 20%shares of preferred stock at…The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information. Issued 60%shares of class A common stock. Stock has par value of $48.00 per share and was issued at $105.00 per share. (Please refer to table below and use only the info in line with your first name initial in the blank/underlined space). Issued 60%shares of no-par class B stock. Issue Price $98.00 Issued 20%shares of preferred stock at…