Problem #16 value preference shares and 1.5 million shares of no-par, P5 stated value ordinary Gloria Detoya Corporation was authorized to issue 900,000 shares of 5%, P100 par shares. The following transactions occurred during 2018: 24,000 ordinary shares were sold to a group of investors at P24 per Feb. 2 share. 5,500 preference shares were issued to an individual in exchange for a parcel of land to be held for future development. The land has a fr market value of P795,000. The preference shares was not actively Feb. 15 traded. 2,500 ordinary shares were issued to a lawyer in exchange for services rendered in forming the corporation. The stock was currently trading at P31 a share. All parties agreed that this represented the value of the lawyer's services. Apr. 30 Nov. 20 Additional 7,000 ordinary shares were issued at P45 per share. Nov. 30 1,400 ordinary shares were repurchased at P35 per share. The shares are to be held in treasury. Dec. 15 Additional 1,000 preference shares were issued at P125 a share. Dec. 30 The firm sold 600 shares of the stock held in treasury at a price of P41 per share. Dec. 31 Preference dividends were declared and paid in cash. Required: Prepare the journal entries to record these transactions. 2. Assuming that the profit for the year amounted to P450,000, prepare the shareholders' equity section of the statement of financial position as at Dec. 31, 2018.
Problem #16 value preference shares and 1.5 million shares of no-par, P5 stated value ordinary Gloria Detoya Corporation was authorized to issue 900,000 shares of 5%, P100 par shares. The following transactions occurred during 2018: 24,000 ordinary shares were sold to a group of investors at P24 per Feb. 2 share. 5,500 preference shares were issued to an individual in exchange for a parcel of land to be held for future development. The land has a fr market value of P795,000. The preference shares was not actively Feb. 15 traded. 2,500 ordinary shares were issued to a lawyer in exchange for services rendered in forming the corporation. The stock was currently trading at P31 a share. All parties agreed that this represented the value of the lawyer's services. Apr. 30 Nov. 20 Additional 7,000 ordinary shares were issued at P45 per share. Nov. 30 1,400 ordinary shares were repurchased at P35 per share. The shares are to be held in treasury. Dec. 15 Additional 1,000 preference shares were issued at P125 a share. Dec. 30 The firm sold 600 shares of the stock held in treasury at a price of P41 per share. Dec. 31 Preference dividends were declared and paid in cash. Required: Prepare the journal entries to record these transactions. 2. Assuming that the profit for the year amounted to P450,000, prepare the shareholders' equity section of the statement of financial position as at Dec. 31, 2018.
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 4MC: Effective May 1, the shareholders of Baltimore Corporation approved a 2-for-1 split of the companys...
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2. Assuming that the profit for the year amounted to P450,000, prepare the
Gloria Detoya Corporation was authorized to issue 900,000 shares of 5%, P100 par
value preference shares and 1.5 million shares of no-par, P5 stated value ordinary
5,500 preference shares were issued to an individual in exchange for a
24,000 ordinary shares were sold to a group of investors at P24 per
Problem #16
24.000 ordinary shares were sold to a group of investors at p24
Feb. 2
share.
Feb. 15
parcel of land to be held for future development. The land has a far
market value of P795,000. The preference shares was not activel
traded.
2,500 ordinary shares were issued to a lawyer in exchange for services
rendered in forming the corporation. The stock was currently trading
at P31 a share. All parties agreed that this represented the value of the
lawyer's services.
Apr. 30
Nov. 20
Additional 7,000 ordinary shares were issued at P45 per share.
Nov. 30
1,400 ordinary shares were repurchased at P35 per share. The shares
are to be held in treasury.
Dec. 15
Additional 1,000 preference shares were issued at P125 a share.
Dec. 30
The firm sold 600 shares of the stock held in treasury at a price of P41
per share.
Dec. 31 Preference dividends were declared and paid in cash.
Required:
- Prepare the journal entries to record these transactions.
suming that the profit for the year amounted to P450,000, preps 31,
olders' equity section of the statement of financial position as at eer
2018.
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