Corporation Lecture
Corporation Lecture
Corporation Lecture
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Feb 1 Amity sold subscriptions for 25,000 shares of stock. The shares have a subscription
price of P15 per share. One-third of the subscriptions price was received as a down
payment.
Mar 9 Issue 1,000 shares as payment for incorporating the business for 15,000.
May 19 Amity exchanged 200 shares of stock for a furniture having a fair market value of
3,800.
Jun 3 The final one-third of the subscription price was received and the shares issued.
Aug 8 Amity sold subscriptions for 25,000 shares of stock. The shares have a subscription
price of P18 per share. No down payment was received.
Required:
Prepare journal entries to record the transactions.
Sir Win – Accounting Lectures
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Prepare journal entries to record each issuance and compute for the legal capital,
assuming that:
Allodra Corporation was organized on September 24, 2020. The corporation was
authorized to issue 10,000 shares of 10% preference shares, P100 par value, and
100,000 shares of ordinary shares, P40 par value. Record in a general journal the
following transactions completed during the firm’s first year of operations:
April Corporation
Shareholder’s Equity Section
December 31, 2021
Ordinary Shares, P10 par, 200,000 shares authorized,
150,000 shares issued and outstanding 1,500,000
Share Premium - ordinary 300,000
Retained Earnings 2,500,000
Total Shareholders’ Equity 4,300,000
Prepared the journal entries to record the following transactions that took place during January
2022:
4. Also,1,000,000 of cash was restricted for the retirement of bonds payable due
2023.
5. The plant expansion was completed during the year at a cost of 1,500,000.
Sir Win – Accounting Lectures
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On March 11, 2021, the board of directors declared a 2-for-1 share split when the
market price of the share was P25.
2. Assuming that the entity declared a 1-for-2 reversed split, what will be the
entries to record the split down.
Sir Win – Accounting Lectures
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1. Date of Declaration
2. Date of Record
3. Date of Payment
Sir Win – Accounting Lectures
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Assumption #1
Assumption #2
Lovely Incorporated has the following selected accounts in its shareholder’s equity:
The board failed to declare dividends for the past two years. The current year’s
results of operations gave the board reasons to declare cash dividends of 200,000.
Required: Compute for dividends per share for preference share and ordinary
share assuming that preference share is:
The preference share has a liquidation value of P1,300 and dividends are
in arrears for three years.