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The Good News Corporation was formed on April 1, 2014. There were two transactions involving Issuance of preference shares: (1) 2,000 shares were issued in exchange for land, and (2) 500 shares were issued for cash of P70 per share. There were also two transactions involving 514

The Good News Corporation was formed on April 1, 2014. There were two transactions involving Issuance of preference shares: (1) 2,000 shares were issued in exchange for land, and (2) 500 shares were issued for cash of P70 per share. There were also two transactions involving 514

Intermediate Accounting: Reporting And Analysis
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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The Good News Corporation was formed on April 1, 2014. There were two transactions involving Issuance of preference shares: (1) 2,000 shares were issued in exchange for land, and (2) 500 shares were issued for cash of P70 per share. There were also two transactions involving 514 issuance of ordinary shares: () 12,000 shares were issued for cash, and (2) 800 shares were issued as payment for pre-operating expenses Selected general ledger accounts for the Good News Corporation show the following activities for the first month of operations: Cash Preference Share Capital,P50 par 100 p00 25.p00 78,000 35,000 Pre-Operating Expenses Preference Share Premium 50.000 10,000 5,400 Land Ordinary Share Capital,P5 par 60,000 4000 150,000 Ordinary Share Premium 18,000 1,400 515 Insructions: 1. Reconstruct the journal entries made for share capital transactions during the month of April. 2. Determine the total number of preference and ordinary shares outstanding.
Transcribed Image Text:The Good News Corporation was formed on April 1, 2014. There were two transactions involving Issuance of preference shares: (1) 2,000 shares were issued in exchange for land, and (2) 500 shares were issued for cash of P70 per share. There were also two transactions involving 514 issuance of ordinary shares: () 12,000 shares were issued for cash, and (2) 800 shares were issued as payment for pre-operating expenses Selected general ledger accounts for the Good News Corporation show the following activities for the first month of operations: Cash Preference Share Capital,P50 par 100 p00 25.p00 78,000 35,000 Pre-Operating Expenses Preference Share Premium 50.000 10,000 5,400 Land Ordinary Share Capital,P5 par 60,000 4000 150,000 Ordinary Share Premium 18,000 1,400 515 Insructions: 1. Reconstruct the journal entries made for share capital transactions during the month of April. 2. Determine the total number of preference and ordinary shares outstanding.
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