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Problem #27 Entries for Selected Corporate Transactions Bacalso Enterprises, Inc. manufactures bathroom fixtures. The shareholders' equit- accounts with balances as of Jan. 1, 2018 are as follows: Ordinary Shares, P25 stated value, 100,000 shares authorized, 50,000 shares issued P1,250,000 250,000 Share Premium Appropriation for Plant Expansion Appropriation for Treasury Stock Retained Earnings 725,000 000'08 Treasury Stock, 2,500 shares, at cost The following selected transactions occurred during the year:

Problem #27 Entries for Selected Corporate Transactions Bacalso Enterprises, Inc. manufactures bathroom fixtures. The shareholders' equit- accounts with balances as of Jan. 1, 2018 are as follows: Ordinary Shares, P25 stated value, 100,000 shares authorized, 50,000 shares issued P1,250,000 250,000 Share Premium Appropriation for Plant Expansion Appropriation for Treasury Stock Retained Earnings 725,000 000'08 Treasury Stock, 2,500 shares, at cost The following selected transactions occurred during the year:

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 12.4APR: Entries for selected corporate transactions Morrow Enterprises Inc. manufactures bathroom fixtures....
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29 Problem #27 Entries for Selected Corporate Transactions Bacalso Enterprises, Inc. manufactures bathroom fixtures. The shareholders' equity accounts with balances as of Jan. 1, 2018 are as follows: Ordinary Shares, P25 stated value, 100,000 shares authorized, 50,000 shares issued P1,250,000 250,000 Share Premium 150,000 Appropriation for Plant Expansion Appropriation for Treasury Stock Retained Earnings 725,000 Treasury Stock, 2,500 shares, at cost The following selected transactions occurred during the year: Received donated land with a fair market value of P100,000. Paid cash dividends of P1 per share on the ordinary shares. The dividend had been properly recorded when declared on Dec. 30 of the preceding fiscal year for P47,500. Sold all of the treasury stock for P95,000. Issued 6,000 ordinary shares for P240,000. Declared a 2% share dividend on ordinary shares, to be capitalized at the market price of the stock, which is P40 a share. Issued the certificates for the dividend declared on July 1. Jan. 20 Mar. 3 Apr. 1 July 1 Aug. 11 Nov. 20 Purchased 2,000 shares of treasury stock for P72,000. Dec. 21 The board of directors authorized an increase of the appropriation for plant expansion by P50,000. Declared a PO.50 per share dividend on ordinary shares. Decreased the appropriation for treasury stock to P72,000. Closed the credit balance of the income summary account, P169,400. Closed the two dividends accounts to Retained Earnings. 21 21 31 31 Required: 1. Enter the Jan. 1 balances in T-accounts for the shareholders' equity accounts. 2. Journalize and post the transactions. 3. Prepare the shareholders' equity section of the statement of financial position as of Dec. 31, 2018.
Transcribed Image Text:29 Problem #27 Entries for Selected Corporate Transactions Bacalso Enterprises, Inc. manufactures bathroom fixtures. The shareholders' equity accounts with balances as of Jan. 1, 2018 are as follows: Ordinary Shares, P25 stated value, 100,000 shares authorized, 50,000 shares issued P1,250,000 250,000 Share Premium 150,000 Appropriation for Plant Expansion Appropriation for Treasury Stock Retained Earnings 725,000 Treasury Stock, 2,500 shares, at cost The following selected transactions occurred during the year: Received donated land with a fair market value of P100,000. Paid cash dividends of P1 per share on the ordinary shares. The dividend had been properly recorded when declared on Dec. 30 of the preceding fiscal year for P47,500. Sold all of the treasury stock for P95,000. Issued 6,000 ordinary shares for P240,000. Declared a 2% share dividend on ordinary shares, to be capitalized at the market price of the stock, which is P40 a share. Issued the certificates for the dividend declared on July 1. Jan. 20 Mar. 3 Apr. 1 July 1 Aug. 11 Nov. 20 Purchased 2,000 shares of treasury stock for P72,000. Dec. 21 The board of directors authorized an increase of the appropriation for plant expansion by P50,000. Declared a PO.50 per share dividend on ordinary shares. Decreased the appropriation for treasury stock to P72,000. Closed the credit balance of the income summary account, P169,400. Closed the two dividends accounts to Retained Earnings. 21 21 31 31 Required: 1. Enter the Jan. 1 balances in T-accounts for the shareholders' equity accounts. 2. Journalize and post the transactions. 3. Prepare the shareholders' equity section of the statement of financial position as of Dec. 31, 2018.
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