The Delgado Software Corporation is authorized to issue 80,000 ordinary shares. During the current year, the corporation issued 25,000 shares. Required: Prepare the required entry to record the issuance of the ordinary shares under each of the following assumptions: 1. The shares have a P5 par value and were sold for P20 per share. 2. The shares are no-par but have a stated value of P10. The total issue price was P850,000. 3. The shares are no-par and have no stated value. They were issued at P25 per share.
Q: On Jan. 1, 2018, the following accounts and their balances appeared in the ledger of the Fuentes…
A:
Q: Item No. 8 is based on the following information: sidsy69 2970 000,001 9 Whistleblow, Inc. issued…
A: The shares issued for legal expenses or other payments, with lower par value, leads to increase…
Q: [The following information applies to the questions displayed below.] The charter of Vista West…
A: Authorized share refers to the number of shares that is legally allowed to be issued by a…
Q: During the year, Fabi Corporation issued 10,000 ordinary shares with P100 par value and 20,000…
A: Equity: It is the amount shareholder invested in the company. This is the difference between total…
Q: The corporate charter of Reilly Corporation allows the issuance of a maximum of 10,000,000 shares of…
A: Shares are the units of the total stock of a company which shows the fractional ownership of the…
Q: Wolmore Resources Ltd. is authorized to issue unlimited numbers of common shares, of which…
A: SOLUTION A JOURNAL COMPANY'S OFFICIAL BOOK IN WHICH ALL BUSINESS TRANSACTIONS ARE RECORDED IN…
Q: Crimson Pottery Corporation is authorized to issue 40,000 shares of $7 convertible preferred shares…
A: A journal entry is the first step in recording financial transactions in the books of business…
Q: Roses Corporation is authorized to issue 500,000 shares of Ordinary Share Capital, P100 par value.…
A: Share capital - It is the amount which was raised by company through issuance of share to its…
Q: Twin Towns, Inc., was authorized to issue 200,000 shares of common stock and originally issued…
A: Given information is: Twin Towns, Inc., was authorized to issue 200,000 shares of common stock and…
Q: Bloosom Corporation has issued 2,000 ordinary shares and 400 preference shares for à luE Required:…
A: The different shares issued for lump sum payment are allocated the money on the basis of ratio of…
Q: XYZ Corporation is authorized to issue 150,000 ordinary shares with par of P150. On June 1 eight…
A: Statement of Profit and Loss Account The purpose of preparing the statement of profit and loss to…
Q: On 1/5/2021, Al-Saada Company obtained approval from the Securities Commission giving it the right…
A:
Q: On September 3, 2021, Mirabel Corporation issued for cash 15,000 shares of no-par ordinary shares…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: [The following information applies to the questions displayed below.] The charter of Vista West…
A: The common stockholders are the owner of the organization. They also have the power to vote.
Q: On January, 2019, Chicosci Corporation was incorporated with authorized Ordinary share capital of P…
A: Ordinary share capital refers to the total share outstanding at the par value per share.
Q: XYZ Corporation is authorized to issue 150,000 ordinary shares with par of P150. On June 1 eight…
A:
Q: On December 1, DOS Corporation issued 1,000 shares of its par ordinary share capital and 2,000…
A: Journal entries are the entries to be recorded in the accounting books of the business for all the…
Q: the journal entries of the above transactions?
A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…
Q: Elmer's Incorporated has the following stock outstanding on Dec. 31, 2013: Ordinary Shares, P100…
A: The company can issue shares by 3 ways. 1. Sale of Stock for Cash 2. Sale of Stock on Account 3.…
Q: 3. ABC Corporation is authorized to issue 80,000 ordinary shares. During the current year, the…
A: (a) Paid in capital in excess of par per share = 20 - 5 = 15 per shares
Q: Coronado Industries has issued 1,500 shares of common stock and 300 shares of preferred stock for a…
A: The issue price of the stock could be issued at par, premium or discount. If the proceed from…
Q: Shake It Off Co. was formed on July 1, 2018. It was authorized to issue 1,800,000 shares of 10 par…
A: The value of stock dividends will be measured as follows: a) If 20% or more is declared; retained…
Q: In the financial year to June 30, 2021, HIFI Ltd issued options for 400,000 shares. During that…
A: Earnings per share are the amount of net income that is held in hands of each shareholder of the…
Q: On March 1, 2020, Seokjin Corporation received subscription for 1,600 Preference Shares with P 300…
A: No. of shares available for subscription = Total authorized to issue - Preference Shares…
Q: The corporate charter of Carla Vista Corporation allows the issuance of a maximum of 30,800,000…
A: Introduction:- The Following Basic Information as follows under:- Carla Vista Corporation allows…
Q: Early in 2007, Herndon Industries was formed with authorization to issue 200,000 shares of $10par…
A:
Q: On July 1, 2020, Phoenix company offers to issue their accountant 800 common shares at their current…
A: Entry for expenses paid by cash: Debit Expense, Credit Cash Entry for issue of common shares: Debit…
Q: The ordinary share balance on December 31, 2021? The preference share balance on December 31, 2021?…
A: Company sells the interest to raise the funds and to raise funds Company sells the shares and the…
Q: Last year the issued share capital of M Bhd was RM 75,000 divided into 60,000 shares of RM 1.25…
A: If the company receives share application more than the shares issued to the public, it is the case…
Q: The charter of Vista West Corporation specifies that it is authorized to issue 201,000 shares of…
A: Outstanding shares is the number of shares authorized, issued and held by investors. The shares…
Q: BFAR Corp. was authorized to issue 200,000 ordinary shares with P50 par value. The company had the…
A: Number of outstanding shares are those shares which are issued and held by the investors. Shares…
Q: At the start of 20X5, Happy Corp. had 20,000 shares of $5 par common stock issued and outstanding.…
A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…
Q: The following transactions relate to the shareholders' equity of Telecom Corporation for 2021, its…
A: Authorized capital represents the limit of capital set at the time of incorporation where the…
Q: Ravonette Corporation issued 300 shares of $10 par value ordinary shares and 100 shares of $50 par…
A:
Q: Acer Inc. organized on June 1,2009, was authorized to issue shares as follows: 9%, 800,000, P100…
A: Equity: It is the amount shareholder invested in the company. This is the difference between total…
Q: JB Ltd was incorporated on 1 July 2021 and issued a prospectus inviting applications for 200,000…
A: Working notes 1) assuming that all forfeited amount must be refunded as per Constitution without…
Q: Jamaica Corp. organized on June 1,2020, was authorized to issue shares as follows: 9%, 800,000,…
A: Every company in order to raise its capital, issues the shares like equity or preference where these…
Q: Villarama Corporation
A: Share Capital section of shareholders equity shows total amount attributable to the shareholders of…
Q: BFAR Corp. was formed on June 1 with 100,000 authorized shares having a par value of P20. The…
A: when company issue share capital and shares to the shareholders there received application allotment…
Q: On January 1, 2021, ABC Corporation was authorized to issue 2 classes of stocks: 50,000 preference…
A: Delinquent: Delinquency is a situation or condition when a party has failed to pay a scheduled…
Q: Helu Corporation was organized on January 1, 2021, with an authorization of 1,000,000 ordinary…
A: Share premium is the accounting term used to represent the amount collected over the par value of…
Q: Bashir Inc. issues 2,500 shares of $1 par value common stock and 1,000 shares of $50 par value…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Prepare the journal entries using Memorandum Entry method Compute for the following balance: Share…
A: Memorandum journal entry is a type of message which is entered in the general journal. This entry…
Q: Los Altos, Inc., is authorized to issue 1,500,000 shares of $1 par value common stock. The company…
A: Solution: When common stock are issued at a price greater than par value, common stock account is…
Q: edunia Berhad was incorporated on 1 July 2020. On 1 August, it decided to issue 300,000 ordinary sha
A: (a) Analysis Table Category Shares Applied Shares Allotted Money Received on Application…
Q: ABC Corporation was organized on January 1, 2020, with authorized capital of 200,000 shares of P10…
A: Formula: Share capital = Number of shares issued x Issue price per share.
Q: ABC Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares…
A: Legal capital is the par value of common stock and preferred stock that the business had sold or…
Q: The Corazon Corporation is authorized to issue 100,000 shares at P20 par ordinary shares. At the…
A: answer with calculations re as follows.
Q: On March 1, 20x5, Ria Corporation has 200,000 shares of P10 par Ordinary Shares outstanding and the…
A: A reverse stock split is the process of consolidating two or more shares into one. Under this…
Q: Sizzy Company was authorized to issue share capital of 100,000 shares with USD50 par value on…
A: The calculation is given below
Answer with solution, for review purposes. Thank you!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.Issuances of Stock Cada Corporation is authorized to issue 10,000 shares of 100 par, convertible, callable preferred stock and 80,000 shares of no-par, no-stated value common stock. There are currently 7,000 shares of preferred and 30,000 shares of common stock outstanding. The following are several alternative transactions: 1. Purchased land by issuing 640 shares of preferred stock and 1,000 shares of common stock. Preferred and common are currently selling at 113 and 36 per share, respectively, No reliable appraisal of the land is available. 2. Same as Transaction 1, except that land is appraised at 104,000, and the preferred stock has no current market value. 3. Issued, for 99,000 cash, a combination of 400 shares of preferred stock and bonds payable with a face value of 50,000. Currently, the preferred stock is selling for 120 per share and the bonds at 104. 4. Same as Transaction 3, except that the bonds do not have a current market value. 5. Same as Transaction 3, except that the preferred stock does not have a current market value. 6. Preferred shareholders (who had originally paid the corporation 110 per share for their stock) convert 6,500 preferred shares into 19,500 shares of common stock. The current market prices of the preferred stock and the common stock are 120 and 41 per share, respectively. 7. The corporation calls the 7,000 shares of preferred stock (originally issued at 110 per share) at 123 per share. Common stock is currently selling for 42 per share. Shareholders elect not to convert into common stock. 8. Same as Transaction 7, except that shareholders owning 2,000 shares of preferred stock elect to convert each share into 3 shares of common stock The remaining 5,000 preferred shares are retired. Required: Next Level Prepare the journal entry necessary to record each transaction. Below each entry, explain your reason for the values used.Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first year, the company has the following transaction: Mar. 1, issued 40,000 shares of preferred stock at $20.50 per share. Journalize the transaction.
- Sun Corporation issues 500 shares of 8 par common stock for a patent. The stock is currently selling for 37 per share on the open market, and no significant impact on the market price is expected by the issuance of the additional shares. Prepare the journal entry to record this transaction.Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?STOCK SUBSCRIPTIONS Juneau Associates had the following stock transactions during the year: (a) Received subscriptions for 100,000 shares of 1 par common stock for 105,000. (b) Received subscriptions for 5,000 shares of 15 par, 8% preferred stock for 80,000. (c) Received a payment of 55,000 on the common stock subscription. (d) Received a payment of 40,000 on the preferred stock subscription. (e) Issued 40,000 shares of 1 par common stock in exchange for a truck with a fair market value of 48,000. (f) Received the balance in full for the common stock subscription and issued the stock. (g) Received the balance in full for the preferred stock subscription and issued the stock. REQUIRED Prepare general journal entries for these transactions, identifying each by letter.
- Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000 shares of $100 par value 8% cumulative preferred stock. It is also authorized to issue 750,000 shares of $6 par value common stock. It has issued 50,000 of the common shares and 1,000 of the cumulative preferred shares. The corporation has never declared a dividend and the preferred shares are one years in arrears. Aggregate Mining has the following transactions this year: Journalize these transactions. For the stock split, show the calculation for how many shares are outstanding after the split and the par value per share after the splitContributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
- Prepare general journal entries for the following transactions of GOTE Company: (a) Received subscriptions for 10,000 shares of 2 par common stock for 80,000. (b) Received payment of 30,000 on the stock subscription in transaction (a). (c) Received the balance in full for the stock subscription in transaction (a) and issued the stock. (d) Purchased 1,000 shares of its own 2 par common stock for 7.50 a share. (e) Sold 500 shares of the stock on transaction (d) for 8.50 a share.Winona Company began 2019 with 10,000 shares of 10 par common stock and 2,000 shares of 9.4%, 100 par, convertible preferred stock outstanding. On April 2 and June 1, respectively, the company issued 2,000 and 6,000 additional shares of common stock. On November 16, Winona declared a 2-for-1 stock split. The preferred stock was issued in 2018. Each share of preferred stock is currently convertible into 4 shares of common stock. To date, no preferred stock has been converted. Current dividends have been paid on both preferred and common stock. Net income after taxes for 2019 totaled 109,800. The company is subject to a 30% income tax rate. The common stock sold at an average market price of 24 per share during 2019. Required: 1. Prepare supporting calculations for Winona and compute its: a. basic earnings per share b. diluted earnings per share 2. Show how Winona would report the earnings per share on its 2019 income statement. Include an accompanying note to the financial statements. 3. Next Level Assume Winona uses IFRS. Discuss what Winona would do differently for computing earnings per share, and then repeat Requirement 1 under IFRS.Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000