TRUE OR FALSE   Fairy Company issued 2,500 ordinary shares with par value of P10 per share for land. The asking price of the land was P90,000 and the fair market value of the land was P85,000. The entry to record the transaction is to debit land for 85,000 and credit ordinary shares 85,000.

Q: Hanson Co. issued 10,000 shares of its $5 par common stock for $15 a share. In addition, it incurred…

A: Journal entry for recording issuance of shares is Debit Cash and Credit Common Stock and Credit…

Q: On October 17, CORAL Company issued 15,000 shares of its ₱100 par ordinary share in acquiring a land…

A: Option C is the Correct Answer i.e  ₱ 1,700,000.

Q: The company issued for P1,200,000 cash, 4,000 shares of P200 par value Preference share and 1,000…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Swifty Corporation sold 310 shares of treasury stock for $35 per share. The cost for the shares was…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: J. Carnation Inc. issued 15,000 shares of its P 100 par ordinary share in acquiring a land that was…

A: When assets are acquired in exchange for shares, the assets are recorded at the fair value of the…

Q: Virma Corporation sold to a subscriber 500 shares of its P 30 par value ordinary shares at P 32 per…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: 1. Noemy Co. owns 15,000 of the 100,000 ordinary shares of Republic Corporation. The investment is…

A: Step 1 Hello. Since your question has multiple parts, we will solve first question for you. If you…

Q: JKL:o. issued 20,000 shares of its P25 par value ordinary shares and 4,000 shares of its P50 par…

A: Definition: Preferred stock: Preferred stock is the cash raised by the company by issuing preferred…

Q: YZ Inc, issued 6,000 shares of its $10 par DA. A debit to Land for $60,000. O B. A credit to Land…

A: Journal entry:            Particulars       Debit(Dr)   Credit(Cr) Land Dr         To Common…

Q: The entity received P7, 580,000 cash from the issuance of its 9%, 3-year P8, 000,000 par value…

A: Preference Share- Preferred stock (also called preferred shares, preference shares, or simply…

Q: At what amount should the Land be recorded in the books of Orange?

A: Given information is: On October 17, ORANGE Company issued 15,000 shares of its ₱100 par ordinary…

Q: Use the following information in answering the next item(s): FORGIVENESS INC. is authorized to issue…

A: When the shares of a company are issued at a price above and over the face value, it is said to be…

Q: On October 1, 2018, Branded Corporation exchanged 20,000 shares of its P 200 par value of Ordinary…

A: Lets understand the basics. When asset is purchased in exchange of shares then asset should be…

Q: COMBO Co. issued 20,000 shares of its P25 par value ordinary shares and 4,000 shares of its P50 par…

A:

Q: ARIES Inc. had the following transactions in the ordinary shares of May Corporation: anuary 5 Bought…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: Rohit Ltd. Purchased assets worth Re. 41,80,000 from Bhuvnesh IndustrialCorporation and issued…

A: A company can issue its shares either at par, at a premium, or even at a discount.   The shares will…

Q: On 8 August 20X3, Alpha Ltd (Alpha) acquired 20 000 shares in Beta Ltd (Beta) that gave Alpha…

A: Fair value of the consideration transferred = Alpha’s shares market value x no. of shares offered

Q: Iris Corporation makes an investment in 200 shares of Harolds Company’s common stock. The…

A: If an investment is purchased then there are two methods to record the investments namely, the cost…

Q: The company issued for P1,000,000 cash, 1,000 shares of P200 par value Preference share and 2,000…

A: The value received in excess of par value is credited to share premium account.

Q: A. Fernando Corporation is authorized to issue 400,000 shares of P85 par value ordinary shares.…

A: Given that, Fernando Corporation is authorized to issue 400,000 shares Par value per share = P85

Q: Holiday, Inc. had the following transactions in the ordinary shares of May Corporation: January 5…

A: Bonus issue means additional shares are issued by the company to the current shareholders free of…

Q: Farmers Incorporated issued 6,000 shares of its $10 par value common stock in exchange for land that…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: ABC Co holds 20,000 shares of XYZ Inc as investment in equity security measured at FVOCI. The…

A: The right issues receive would be a part of investment and recognize at fair value at the receiving…

Q: Ogag company issued 1,000 shares of its P5 par value ordinary shares as payment for 1,000 hours of…

A: Par. value of Ordinary Shares :- P5  No. Of Equity Shares issued :- 1000 shares  Market Value of…

Q: Maganda Company had the following transactions for 20x5:   a. On January 1, 20x5 Maganda Company…

A: SOLUTION- INVESTMENT IN EQUITY- INVESTMENT IN EQUITY SECURITIES IS THE CURRENT OR NON-CURRENT…

Q: On February 22, Triangle Corporation acquired 2,700 shares of the 95,000 outstanding common stock of…

A: Accounting for investment is the process of journalising the transactions occurred due to…

Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…

A: The dividend for which the client is entitled to receive is calculated on the number of shares held…

Q: on October 17, ORANGE Company issued 15,000 shares of its ₱100 par ordinary share in acquiring a…

A: Share premium: It can be defined as the excess of the issue price of a share over its par value.

Q: By what amount should the share premium account increase as a result of the transaction? Show your…

A: The organization can raise funds for the operation by issuing common stock, preferred stock for long…

Q: ABC bought 100 common shares of XYZ. The price paid was $ 40, per share, plus he paid $ 280 in…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Pat issued 1,000 shares of its P5 par value ordinary shares to Nenita a compensation for 1,000 hours…

A: Share premium refers to the amount that is determined from the difference shares face or par value…

Q: eslie company issued 60,000 shares with a par value of 100 in exchange for a land with fair value of…

A: Share premium is the amount of capital which is received over and above from the face value or par…

Q: JKL Co. issued 20,000 shares of its P25 par value ordinary shares and 4,000 shares of its P50 par…

A: Equipments acquired should be recorded in books of accounts at fair value.

Q: Katipunan Company has financial liability (accounted under amortized cost) with face amount of…

A: Share premium is the amount over and above the par value received by the company. It is the…

Q: When 10,000 shares of P20 par value ordinary shares are issued in payment for a parcel of land with…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…

A: Right shares :              There are various sources from which the corporation can finance their…

Q: Fiona Company issued 21,500 ordinary shares with par value of P85 in exchange for land with a fair…

A: The amount of ordinary share premium is equal to the consideration received in excess of the par…

Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…

A: Investment transactions in 20X0 : On March 20, Purchased shares of XYZ Co. ordinary shares = 1000…

Q: On June 1, Jungkook Corporation issued 8,000 shares of its P100 par ordinary share capital to Jimin…

A: Total market value of ordinary shares = No. of shares x Market value per share = 8000 shares x P150…

Q: MJH Company issued 500 shares of stock with a par value of $10 per share for land valued at $20,000.…

A: Since mjh company issued shares in exchange of land  Paid in capital in excess of par value is  $…

Q: Kelly's Corp. authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and…

A: Introduction: Journal: Recording of  business transactions in a chronological order. First step in…

Q: client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of XYZ…

A: Shareholders are those person who have own and invested in the company share and has the right in…

Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…

A: Investment Carrying Value= $224.75.

Q: On September 1, FAITH Inc issued 120,000 shares of its P50 par value ordinary share in exchange for…

A: Assets in the business should always be recorded at their fair value in the business.

Q: The following transactions related to Almas Co. Ltd. 1. The Company offered 50,000 shares of Rs. 10…

A: Shares are equity securities that are issued by a company, investors who purchase equity shares are…

Q: COMBO Co. issued 20,000 shares of its P25 par value ordinary shares and 4,000 shares of its P50 par…

A: Assets acquired should be entered in books of accounts at fair value of assets. Equipment having…

Q: Red Corporation will issue common shares with a par value of P10 for the net assets of Blue Company.…

A: Acquisition Goodwill: Goodwill is an intangible asset connected with the acquisition of a Business…

Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…

A: The right shares refer to the shares issued to the existing shareholders. The right shares are the…

Q: Aira Company issued rights to subscribe to its stock, the ownership of 4 shares entitling the…

A: Right Shares: As the name suggests, a rights issue is a way for current shareholders to buy…