Problem 2:GRAPES Company provided the following data for the year:Sold 25,000 preference shares, 12%, P50 par, at P75Sold 80,000 ordinary shares of P10, par at P45.Purchased and retired 10,000 preference shares at P60Purchased 5,000 shares at P40 to be held as treasurySold 3,000 treasury ordinary shares at P50Share split up for ordinary shares, 2 for 1Shareholders donated 10,000 ordinary shares. One half of these were sold for P20Retired 500 treasury ordinary sharesNet income for the year was P2,500,000Appropriated retained earnings equal to the balance of treasury shares.Requirements:C. Prepare all necessary entries for the year.D. Compute or provide the answers for the following:8. What is the balance of preference share capital at year-end?9. What is the balance of ordinary share capital at year-end?10. What is the total balance of treasury shares at year-end?11. What is the total outstanding ordinary shares at year-end?12. What is the total issued shares at year-end (add preference and ordinary)13. How much is the balance of the shareholders' equity at year-end?14. How much is the total legal capital?15. How much the total contributed capital?

Stockholders’ equity statement forms part of the financial statement which shows the change in the…

Answered: Problem 2: GRAPES Company provided the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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GRAPES Company provided the following data for the year: a. Sold 25,000 preference shares, 12%, P50 par, at P75 b. Sold 80,000 ordinary shares of P10, par at P45. c. Purchased and retired 10,000 preference shares at P60 d. Purchased 5,000 shares at P40 to be held as treasury e. Sold 3,000 treasury ordinary shares at P50 f. Share split up for ordinary shares, 2 for 1 g. Shareholder donated 10,000 ordinary shares. One-half of these were sold for P20 h. Retired 500 treasury ordinary shares i. Net income for the year was P2,500,000 j. Appropriated retained earnings equal to the balance of treasury shares. What are the total outstanding ordinary shares at year-end? What is the total issued shares at year-end (add preference and ordinary) How much is the balance of the shareholders' equity at year-end?
GRAPES Company provided the following data for the year: a. Sold 25,000 preference shares, 12%, P50 par, at P75 b. Sold 80,000 ordinary shares of P10, par at P45. c. Purchased and retired 10,000 preference shares at P60 d. Purchased 5,000 shares at P40 to be held as treasury e. Sold 3,000 treasury ordinary shares at P50 f. Share split up for ordinary shares, 2 for 1 g. Shareholder donated 10,000 ordinary shares. One-half of these were sold for P20 h. Retired 500 treasury ordinary shares i. Net income for the year was P2,500,000 j. Appropriated retained earnings equal to the balance of treasury shares. What is the balance of preference share capital at year-end? What is the balance of ordinary share capital at year-end? What is the total balance of treasury shares at year-end?
Problem 2:GRAPES Company provided the following data for the year:• Sold 25,000 preference shares, 12%, ₱50 par, at ₱75• Sold 80,000 ordinary shares of ₱10, par at ₱45.• Purchased and retired 10,000 preference shares at ₱60• Purchased 5,000 shares at ₱40 to be held as treasury• Sold 3,000 treasury ordinary shares at ₱50• Share split up for ordinary shares, 2 for 1• Shareholders donated 10,000 ordinary shares. One half of these were sold for ₱20• Retired 500 treasury ordinary shares• Net income for the year was ₱2,500,000• Appropriated retained earnings equal to the balance of treasury shares.Requirements: D. Compute or provide the answers for the following:8. What is the balance of preference share capital at year-end?9. What is the balance of ordinary share capital at year-end?10. What is the total balance of treasury shares at year-end?
GRAPES Company provided the following data for the year: a. Sold 25,000 preference shares, 12%, P50 par, at P75 b. Sold 80,000 ordinary shares of P10, par at P45. c. Purchased and retired 10,000 preference shares at P60 d. Purchased 5,000 shares at P40 to be held as treasury e. Sold 3,000 treasury ordinary shares at P50 f. Share split up for ordinary shares, 2 for 1 g. Shareholder donated 10,000 ordinary shares. One-half of these were sold for P20 h. Retired 500 treasury ordinary shares i. Net income for the year was P2,500,000 j. Appropriated retained earnings equal to the balance of treasury shares. Prepare all necessary entries for the year
Problem 2:GRAPES Company provided the following data for the year:• Sold 25,000 preference shares, 12%, ₱50 par, at ₱75• Sold 80,000 ordinary shares of ₱10, par at ₱45.• Purchased and retired 10,000 preference shares at ₱60• Purchased 5,000 shares at ₱40 to be held as treasury• Sold 3,000 treasury ordinary shares at ₱50• Share split up for ordinary shares, 2 for 1• Shareholders donated 10,000 ordinary shares. One half of these were sold for ₱20• Retired 500 treasury ordinary shares• Net income for the year was ₱2,500,000• Appropriated retained earnings equal to the balance of treasury shares.Requirements:D. Compute or provide the answers for the following:14. How much is the total legal capital?15. How much the total contributed capital?
Problem 2:GRAPES Company provided the following data for the year:• Sold 25,000 preference shares, 12%, ₱50 par, at ₱75• Sold 80,000 ordinary shares of ₱10, par at ₱45.• Purchased and retired 10,000 preference shares at ₱60• Purchased 5,000 shares at ₱40 to be held as treasury• Sold 3,000 treasury ordinary shares at ₱50• Share split up for ordinary shares, 2 for 1• Shareholders donated 10,000 ordinary shares. One half of these were sold for ₱20• Retired 500 treasury ordinary shares• Net income for the year was ₱2,500,000• Appropriated retained earnings equal to the balance of treasury shares.Requirements: C. Prepare all necessary entries for the year.
Problem 6. The following data were taken from the records of Valencia Frutti Corporation: Share Capital, P50 par, 3,000 shares, Authorized 1,000 shares issued Premium on Share Capital P50,000 3,000 Accumulated Profits (Losses) The Corporation reacquires 100 shares at P55.00 per share, and later sold these share for: a) P55.00 per share (at cost) b) P60.00 per share (above cost) c) P50.00 per share (below cost) Required: 1. Journal Entry to record the acquisition of the treasury shares. 2. Journal entry to record the sale of the treasury shares under the three given cases. 10,000
Problem 2: (Book Value per share with Two Classes of Preference Shares)TINT Corporation presents the following condensed statement of financial position as of the close of the year:Cash ₱ 520,000 Accounts Payable ₱ 550,000Other Assets 1,333,000 Ordinary Share Capital 550,0005% Preference Share Capital 330,0007% Preference Share Capital 220,000Accumulated Profits 203,000Total Assets ₱ 1,853,000 Total Equities ₱ 1,853,000The 5% preference share capital is cumulative, the 7% preference share capital is non-cumulative, but both are fully participating. The par value of all shares is ₱100. Requirements:C. Compute for the book value per share for: 5. Ordinary shares6.a. 5% Preference shares b. 7% Preference shares
An entity provided the following shareholders' equity at year-end:Ordinary share capital, P100 par, 72,000 shares 7,200,000Subscribed ordinary share capital, 12,000 shares 1,200,000Subscription receivable 400,000Treasury shares, 4,000 at cost 600,000Retained earnings 2,000,000What is the book value per ordinary share?
9. The following data pertain to BUENO Corporation: Redeemable Preference Share Capital, P100 par; 5,000 shares issued and outstanding Preference Share Premium Retained Earnings P500,000 50,000 100,000 June 5 Redeemed and retired 500 preference shares at P150 per share. 30 Redeemed and retired 500 preference shares at P90. Direction: a) Journal entries b) Prepare the shareholders' Equity Section as of June 30.
The shareholders' equity of XYZ Corporation is presented as follows: 10% Preference Share 2,000 shares outstanding P200,000; Ordinary Shares, 5,000 shares outstanding P100,000 Preference share premium P20,000; Ordinary share premium P25,000; Retained Earnings P450,000. If 350 shares of Preference Shares were retired at P125/share, how much will be credited to Cash?
Following is the Balance Sheet of Redeemable Limited: 24 I. Equity and Liabilities (1) Shareholders' Funds (a) Paid-up Share Capital : 10% 1,000 Redeemable Preference Shares of $ 100 each fully called up Less : Calls in Arrears on 50 Shares @ $ 20 each 1,00,000 1,000 99,000 5,00,000 50,000 Equity Shares of $10 each (b) Reserves and Surplus : Development Rebate Reserve General Reserve 50,000 1,00,000 1,50,000 1,51,000 (2) Other Liabilities Total Equity and Liabilities 9,00,000 II. Assets Other Assets 8,10,000 90,000 Bank Total Assets 9,00,000 The Redeemaule Preference Shares were redeemed on the following basis : (1) Further 4,500 equity shares were issued at a premium of 10 per cent; (2) of the 50 Preference Shares, holders for 40 shares paid the call before the date of redemption. The balance 10 shares were forfeited for non-payment of calls before redemption. The forfeited shares were reissued as fully paid on receipt of $500 before redemption; (3) Preference shares were redeemed at…

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