BFAR Corporation has the following transactions during the year: Authorized Ordinary share capital of 500,000 shares at P4 par value. • Issued 20,000 ordinary shares at P6.00 per share. ● • Issued 10,000 in exchange of printing equipment at P100,000. • Issued 20,000 in exchange of 50 hours legal services. The fair value of legal services is 2,500 per hour. Compute the Ordinary Share capital.
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- X Company made the following transactions: Received subscription of 10,000 preference shares with par value of 45 for 65 per share. Received 25% the next day and 30% after three days. Received subscription of 25,000 ordinary shares with par value of 7.50 for 200,000. received the following payments- 75,000 and 50,000. Required: Compute for the legal capital of each transaction and prepare all journal entries needed to record the transactions above.At the beginning of the current year, Relay Company was organized with authorized capital of 100,000 shares of P200 par value. January 10 Issued 25,000 shares at P220 a share. March 25 Issued 1,000 shares for legal services when the fair value was P240 a share. September 30 Issued 5,000 shares for a tract of land when the fair value was P260 a share. What amount should be reported for share premium? O P540,000 O P840,000 O P500,000 O P800,000Problem1: The Ianey Corporation is authorized to issue 120,000 shares of P 220 par value ordinary share capital. Ianey has the following transactions during the month: * Issued 24,200 shares at par, receiving cash. * Issued 320 shares to attorneys for services in securing the corporate charter and for preliminary legal costs of organizing the corporation. The value of the service was P 85,500. * Issued 15,600 ordinary shares in exchange for a land and a building with fair market values of P 1,320,000 and P 2,780,000, respectively. * Received cash for 8,200 ordinary shares sold at P 310 per share. Questions: 1. What is the amount that is to be reported as Ordinary share capital in the statement of financial position? 2. What is the amount that is to be reported as Share premium - ordinary share in the statement of financial position?
- A piece of equipment is acquired by an entity by issuing 10,000 shares of 10 par ordinary shares. The equipment has a list price of 150,000 and a trade discount of 10%. If paid in cash at the time of purchase, a 5% cash discount is allowed. The company’s ordinary shares are actively traded in a capital market with an average market price of 13 at the date of the exchange. What is the cost of the equipment? A. 130,000 B. 128,250 C. 150,000 D. 135,000An entity was organized at the beginning of current year with 100,000 authorized shares of P100 par value. During the current year, the following transactions occurred:January 1 Sold 30,000 shares at P150 per shareFebruary 1 Issued 2,000 shares for legal services with fair value of P250,000. The shares on this date are quoted at P140 per share.March 1 Purchased 5,000 treasury shares at a cost of P120 per share.October 1 Issued P5,000,000 convertible bonds at 120. The bonds are quoted at 98 without the conversion feature.November 15 Declared a 2 for 1 share split when the market value of the share was P160.December 15 Sold 20,000 shares at P75 per share.December 31 The net income for the year was P2,000,0000. 1. Prepare the journal entries.2. Prepare the lead schedule 3. Prepare the stockholders equity sectionmeric Response Sample Corp. was organized on January 1, 2021, with authorized capital of 100,000 shares of P55 par value Ordinary Share Capital. Eighty-five thousand (85,000) shares were issued for cash at P77 per share. During the year, the company earned a profit of P1,250,000 and distributed dividends of P650,000. Instructions: Based on the given information, compute for each of the items listed below. 1. Balance of Retained Earnings account as of December 31, 2021. 2. Balance of ordinary share capital account as of December 31, 2021. 3. Total contributed capital as of December 31, 2021. 4. Total additional paid-in capital as of December 31, 2021. 5. Total shareholders' equity as of December 31, 2021.
- At the beginning of current year, BFAR Company was organized and authorized to issue 100,00 shares with P50 par value. During the current year, the entity had the following transactions relating to Shareholders' Equity • Issued 10,000 shares at P70 per share • Issued 20,000 shares at P80 per share • Purchased 1,000 Treasury shares at P100 per share. Reported net income of P1,000,000. . Declared cash dividends of P200,000. Compute the total Shareholders' Equity at year-end.Recayo Corporation was organized at the beginning of the current year with 100,000 authorized shares of P100 par value. During the current year, the following transactions occurred. January 1 Sold 30,000 shares at P150 per share. February 1 Issued 2,000 shares for legal services with fair value of P250,000. The shares on this date are quoted at P140 per share. March 1 Purchased 5,000 treasury shares at a cost of P120 per share. October 31 Issued P5,000,000 convertible bonds at 120. The bonds are quoted at 98 without the conversion feature. November 15 Declared a 2-for-1 share split when the market value of the share was P160. December 15 Sold 20,000 shares at P75 per share. December 31 The net income for the year was P2,000,000. 3. What amount should be reported as share capital at year-end? 4. What amount should be recognized as share premium at year-end? 5. What is the total shareholders’ equity at year-end?An entity was organized at the beginning of current year with 100,000 authorized shares of P100 par value. During the current year, the following transactions occurred: January 1 Sold 30,000 shares at P150 per share February 1 Issued 2,000 shares for legal services with fair value of P250,000. The shares on this date are quoted at P140 per share. March 1 Purchased 5,000 treasury shares at a cost of P120 per share. October 1 Issued P5,000,000 convertible bonds at 120. The bonds are quoted at 98 without the conversion feature. November 15 Declared a 2 for 1 share split when the market value of the share was P160. December 15 Sold 20,000 shares at P75 per share. December 31 The net income for the year was P2,000,0000. What amount should be reported as share capital at year-end? What amount should be recognized as share premium at year-end? What is the total shareholders’ equity at year-end? How many shares are outstanding at…
- On January 20, HK Corporation was formed with the capital of 100.000 TL by issuing 100.000 shares of stock with " 1 par value. Stocks were sold for 1.21 TL each, 1.000 TL commission was charged for selling stocks and the remaining receipts were deposited to the bank account of the business. a. 120.000 TL debit to 102-Bank; 1.000 TL debit to 653-Com. Expense and 100.000 TL credit to 110-Stocks; 21.000 TL credit to 645-MS Capital Gain O b. 120.000 TL debit to 102-Bank; 1.000 TL debit to 653-Com. Expense and 100.000 TL credit to 501-Unpaid Capital; 21.000 TL credit to 520-A. Paid-in Capital O c. 121.000 TL debit to 102-Bank and 100.000 TL credit to 501-Unpaid Capital; 20.000 TL credit to 520-A. Paid-in Capital; 1.000 TL credit to 653-Com. Expense d. 120.000 TL debit to 102-Bank; 1.000 TL debit to 653-Com. Expense and 100.000 TL credit to 110-Stocks; 21.000 TL credit to 520-A. Paid-in CapitalAt the beginning of current year, BFAR Company was organized and authorized to issue 100,00 shares with P50 par value. During the current year, the entity had the following transactions relating to Shareholders' Equity • Issued 10,000 shares at P70 per share • Issued 20,000 shares at P80 per share Purchased 1,000 Treasury shares at P100 per share. Reported net income of P1,000,000. • Declared cash dividends of P200,000. ● Compute the total Shareholders' Equity at year-end. 7,200,000 O 8,000,000 O2,200,000 O 3,000,000At the beginning of the current year, Bella Company was organized and authorized to issue100,000 shares with P50 par value. During the current year, the entity had the following transactions relating to shareholders' equity:• Issued 10,000 shares at P70 per share• Issued 20,000 shares at P80 per share• Reported net income of P1,000,000• Paid dividends of P200,000• Purchased 3,000 treasury shares at P100 per share What is the total shareholders' equity at year-end?A. P2,800,000B. P3,300,000C. P2,000,000D. P3,000,000