The shareholders’ equity account of Unknown Corporation, after its initial year of operation in 2021 shows the following: Date Particulars Debit Credit Issued 6,000 shares at par of Php 100 in exchange for real property with a market value of Php 800,000; authorized 20,000 shares. Jan 1 Php 600,000 960,000 Jan 15 Sold 8,000 shares at Php 120 Mar 10 Purchased 800 Unknown Corporation Shares at Php 150 May 15 Loss on sale of machinery June 10 Sold 400 treasury shares Dec 31 Cash dividends declared payable January 15, 2022 Dec 31 Profit for the year Php 120,000 40,000 68,000 80,000 316,000 Based on the information presented above, compute for the following: 1. Total contributed capital 2. Total equity

The shareholders’ equity account of Unknown Corporation, after its initial year of operation in 2021 shows the following: Date Particulars Debit Credit Issued 6,000 shares at par of Php 100 in exchange for real property with a market value of Php 800,000; authorized 20,000 shares. Jan 1 Php 600,000 960,000 Jan 15 Sold 8,000 shares at Php 120 Mar 10 Purchased 800 Unknown Corporation Shares at Php 150 May 15 Loss on sale of machinery June 10 Sold 400 treasury shares Dec 31 Cash dividends declared payable January 15, 2022 Dec 31 Profit for the year Php 120,000 40,000 68,000 80,000 316,000 Based on the information presented above, compute for the following: 1. Total contributed capital 2. Total equity

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 2MC: Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions...

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Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000
Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.
Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were originally issued at an average price of $10 per share. Later it resells 6,000 of the shares for $15 per share and the remaining 4,000 shares for $17 per share. How much gain or loss should Ames report on its income statement as a result of these transactions? $38.000 gain $0 $20,000 loss $20,000 loss and $38,000 gain
On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
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