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- Problem 1 The Century Philippines Corporation has been authorized to issue 100,000 shares on December 1, 2014. Seven incorporators subscribed 25% of the authorized shares at par value of P80. The subscription requires 25% down payment, 50% payment on the balance after 60 days and remainder payable after 90 days from the date of subscription. The following are the additional transactions for 2015: Jan 3- Issued 4,000 shares and collected cash of P105 per share Jan 4- Received subscription from several subscribers for 3,000 shares at P108 per share. A 25% down payment was received from the subscribers. Jan 10- Professional fees amounting to P100,000 were paid to Quality Consultancy Inc. who made a feasibility study and worked on the legal papers needed for its incorporation Jan 12- A lot worth P550,000 was received in exchange for 5,000 shares Jan 30-First installment payment was collected from the incorporators Mar 1- The incorporators paid the balance of their accounts…14 - On 04.05.2020, our enterprise sold 1,000 shares of Kardemir A.Ş., which it had purchased for a temporary investment of 12 TL, for 10 TL each, after paying a commission of 250 TL to the relevant bank, the remaining amount was deposited into the bank account of the enterprise. Which of the following calculations is incorrect? a) 110 Stocks Hs. 12.000 TL Creditor B) 655 Securities Sales Losses Hs. 2.000 TL Debt NS) 653 Commission Expenses Hs. 250 TL Borrowed D) 102 Banks Hs. 9.750 TL Borrowed TO) 655 Securities Sales Losses Hs. 2.000 TL Creditor13 - On 04.05.2020, our enterprise sold 1,000 of the shares of Kardemir A.Ş., which it had purchased for a temporary investment of 12 TL, for 15 TL each, and after paying a commission of 250 TL to the relevant bank, the remaining amount was deposited into the bank account of the enterprise. Which of the following calculations is incorrect? a) 653 Commission Expenses Hs. 250 TL Borrowed B) 110 Stocks Hs. 12.000 TL Creditor NS) 655 Securities Sales Profits Hs. 3.000 TL Creditor D) 102 Banks Hs. 14.750 TL Debtor TO) 645 Securities Sales Profits Hs. 3.000 TL Debtor
- 2. Knicks Corporation was organized on January 1, 2018 with authorized capital of P 2,000,000, P 20 par value. Subsequently, incorporators subscribed for 25,000 shares at P 24. How much must be paid up upon subscription to comply with the requirement of the Securities and Exchange Commission?Required to answer. Single choice. a. P125,000 b. P500,000 c. P600,000 d. P150,0003. On June 1, 2015, Golden Warriors Corporation declared a share capital dividend entitling its shareholders to one additional share for each share held. At the time the dividend was declared, the market value was P 100 per share and the par value was P 50 per share. On this date, Golden had 65,000 shares issued and 5,000 shares in the treasury. What entry should Golden make to record this June 1 transaction?Required to answer. Single choice. a. debit Retained earnings-P6,000,000; credit Share Capital Dividend Distributable-P3,000,000; credit Paid in Capital from Share CapitalDividends-P3,000,000…Case study 3: Victory SAOG is registered with an authorized capital of OMR 50 million ordinary shares of 100 baiza each. The company had issued and paid up capital of OMR 33 million. In the year 2017 Victory SAOG has an outlined share repurchase program which would enable the company to repurchase at least 10 per cent of its outstanding shares. The company had an opening balance of OMR 55 million in its retained earnings account. After completing the required formalities for such repurchase in the vear 2017, the company was able to repurchase the 19.8 million shares valued at OMR 31,680,000 in the month of August. Later in the year 2019 the company was able to repurchase another 10 million shares for OMR 15 million in July. The following are the profits earned by the company over the period of 2017 to 2019: OMR in Millions' 2017: 110 2018: 150 2019: 160 The company decided to distribute dividends as mentioned below: #Interim dividend: 2017: Nil 2018:5% 2019:Nil #Final dividend:…Journalize the transaction starting from December 1 to June 20. The Century Philippines Corporation has been authorized to issue 100,000 shares on December 1, 2014. Seven incorporators subscribed 25% of the authorized shares at par value of P80. The subscription requires 25% down payment, 50% payment on the balance after 60 days and remainder payable after 90 days from the date of subscription. The following are the additional transactions for 2015: Jan 3- Issued 4,000 shares and collected cash of P105 per share Jan 4- Received subscription from several subscribers for 3,000 shares at P108 per share. A 25% down payment was received from the subscribers. Jan 10- Professional fees amounting to P100,000 were paid to Quality Consultancy Inc. who made a feasibility study and worked on the legal papers needed for its incorporation Jan 12- A lot worth P550,000 was received in exchange for 5,000 shares Jan 30-First installment payment was collected from the incorporators Mar 1-…
- 4. Coca Cola Amatil capital consisted of 172,000 shares issued at $2.00 and paid to $1.75 per share. On 1 January 2020, the company made a call of $0.25 per share payable by 26 February 2020. At this date, all shareholders had paid the call except the holder of 8,000 shares. On 15 March, Coca Cola Amatil decided to forfeit the shares on which the call was unpaid. The company’s constitution provided for any surplus on resale, after satisfaction of unpaid calls and costs, to be returned to the shareholder whose shares were forfeited. On 28 March 2020, the 8,000 shares were reissued for $1.90 per share, the shares being credited as paid to $2.00 per share. Costs of reissue amounted to $2,800. What is the correct amount for the refund balance from the forfeited shares liability? A. 16, 000 B. 2, 800 C. 15, 200 D. 10, 400 5. ca Cola Amatil capital consisted of 172,000 shares issued at $2.00 and paid to $1.75 per share. On 1 January 2020, the company made a call of $0.25 per share…18. The capital account of Gene, Inc. on December 31, 2014 were as follows: Preference share capital, 20,000 share, P20 par 400,000 Share premium – preference 160,000 Ordinary share capital, 50,000 shares, P80 par 4,000,000 Share premium – ordinary 600,000 Retained earnings 360,000 During the year ending December 31, 2015, the following summarizes the transactions affecting the shareholders’ equity. April 30 1,000 preference shares were retired at P25 per share. June 15 2,000 treasury shares, ordinary, were purchased at P85 per share. June 30 A two-for-one ordinary share split was declared. July 31 800 treasury shares were reissued P50 per share. December 31 Profit for 2015 was P300,000. What was the total share premium on December 31, 2015? Group of answer choices A. 766,000 B. 761,000 C. 760,000 D. 755,000a) JH Bhd issued 20,000 redeemable preference shares for RM20,000 cash on 24 August 2020. Dividend payment is mandatory at 10 sen per share. Redemption is discretionary. The current borrowing cost of the company is 8%. Required: i) Determine the liability component and the equity component of the redeemable preference shares. ii) Provide two other types of preference shares which can be treated as compound financial instrument. b) In a rights offer, AY Bhd issued 500,000 ordinary shares at a price of RM2.00 per share for cash. As a package with the rights issue, the company also issued 500,000 free warrants. The warrants entitle shareholders to subscribe for ordinary shares at an exercise price of RM2.50 per share within two years of the issue. The fair value of the ordinary shares and warrants at the date of issue are RM1.60 and RM0.40 respectively. Required: Explain how AY Bhd should account for the proceeds from rights issue with free warrants and the subsequent exercise of…
- Zigma SAOG has issued 4 million, OMR 1 equity share. During the year 2016, the company decided to make a bonus issue in the ratio of 2 for 4 shares held. The following balances reserves and surplus accounts that the company had prior to the Issue of bonus shares: Share premium OMR 1,550,000 General Reserve OMR 90,000 Retained earnings OMR 600,000 Revaluation surplus OMR 30,000 For the issue of bonus shares it is agreed to use the share premium in priority and general reserve can be used to an extent of OMR 60,000 only. Based on the above data, write the respective journal entry and show its working and the effect on items of SOFP.X Ltd offered for issue ten million ordinary shares of R1 each at 120 cent per share. Applications were received, however, for only eight million shares and the directors proceeded to allot the shares applied for. Expenses of the issue amounted to R3 000. X Ltd availed itself of Act 71 of the Companies Act, 2008. What will be the balance in the Share premium account, after these transactions are accounted for?3) A company entirely financed with equity has 1,800,000 shares outstanding and decides to issue new shares with subscription rights. The price of shares before the issuance was 42 euro, and the price at which the shares are issued is 38 euro. If the price after the share issuance is going to be 40 euro, determine the number of subscription rights that a shareholder needs to buy one new share in the issuance with subscription rights.