Help. Gloria Detoya Corporation was authorized to issue 900,000 shares of 5%, P100 parvalue preference shares and 1.5 million shares of no-par, P5 stated value ordinaryshares. The following transactions occurred during 2018:Feb. 224,000 ordinary shares were sold to a group of investors at P24 pershare.5,500 preference shares were issued to an individual in exchange for aparcel of land to be held for future development. The land has a fairmarket value of P795,000. The preference shares was not activelyFeb. 15traded.2,500 ordinary shares were issued to a lawyer in exchange for servicesrendered in forming the corporation. The stock was currently tradingat P31 a share. All parties agreed that this represented the value of thelawyer's services.Apr. 30Nov. 20Additional 7,000 ordinary shares were issued at P45 per share.1,400 ordinary shares were repurchased at P35 per share. The sharesare to be held in treasury.Nov. 30Dec. 15Additional 1,000 preference shares were issued at P125 a share.Dec. 30The firm sold 600 shares of the stock held in treasury at a price of P41per share.Dec. 31Preference dividends were declared and paid in cash.Required:1. Prepare the journal entries to record these transactions.2. Assuming that the profit for the year amounted to P450,000, prepare theshareholders' equity section of the statement of financial position as at Dec. 31,2018.

Shareholders' equity can be defined as the amount of total capital which has been by the business to…

Required: 1. 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.

Required: 1. 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 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

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Question

Help.

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
shares. The following transactions occurred during 2018:
Feb. 2
24,000 ordinary shares were sold to a group of investors at P24 per
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 fair
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.
1,400 ordinary shares were repurchased at P35 per share. The shares
are to be held in treasury.
Nov. 30
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:
1. 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.

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