Answer with computation and explain Problem 8-25Lump Sum Sale of Share CapitalX Corporation issued its share capital in exchange for a portion of land witha fair value of PI,500,000. Information related to share capital is as follows:Par valyeper shareP10050Number ofMarket valueClasses of share capital6% Preference sharesOrdinary sharesshares sold3,0004,000per shareNoneNoneRequired: Record the issuance of the two classes of share capital at a lumpSum price

Lump-sum sale of share capital is done for the purchase price of some asset in which more than one…

Problem 8-25 Lump Sum Sale of Share Capital X Corporation issued its share capital in exchange for a portion of land with a fair value of PI,500,000. Information related to share capital is as follows: Classes of share capital 6% Preference shares Ordinary shares shares sold 3,000 4,000 Number of Par valye Market value per share PI00 50 per share None None Required: Record the issuance of the two classes of share capital at a lump Sum price

Problem 8-25 Lump Sum Sale of Share Capital X Corporation issued its share capital in exchange for a portion of land with a fair value of PI,500,000. Information related to share capital is as follows: Classes of share capital 6% Preference shares Ordinary shares shares sold 3,000 4,000 Number of Par valye Market value per share PI00 50 per share None None Required: Record the issuance of the two classes of share capital at a lump Sum price

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

ChapterD: Investments

Section: Chapter Questions

Problem D.9EX

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PROBLEM 1 The following data were compiled prior to preparing statement of financial position of the Conviction Corporation:Authorized share capital, P100 par value P 4,000,000Unissued share capital 800,000Subscribed share capital 480,000Subscriptions receivable `120,000Premium on share capital 320,000Premium on bonds payable 240,000Gain on sale of treasury shares 80,000Donated capital 800,000Share warrants outstanding 200,000Reserve for bond sinking fund 400,000Reserve for depreciation 600,000Treasury shares, at cost 144,000Retained earnings, unappropriated 720,000Cash dividends payable 160,000Revaluation increment on property 800,000Net unrealized loss on financial assetsat fair value through OCI 96,000 1. What is the total share premium? 2. What is the total contributed capital? 3. What is the total appropriated earnings?
Answer with computation and explanation X Company sold 1,000 ordinary shares at par of P20 per share for P50,000. The journal entry to record the transaction would have a a credit to ordinary shares for P50,000. b credit to share premium for P20,000 C. credit to ordinary shares of P20,000. d. debit to share premium of P30,000
quity Problem 4: Legal and Contributed Capital Aquinde Corporation has the following accounts in its shareholders equity on February 1, 20x1: Preference share, P100 par Ordinary share, P50 par Subscribed preference share Subscription receivable - preference Subscribed ordinary share Subscription receivable - ordinary Share premium - preference Share premium - ordinary Retained earnings Treasury share 5,000 ordinary share at cost 2,500,000 5,500,000 1,500,000 800,000 2,000,000 600,000 200,000 400,000 2,000,000 400,000 Required: Compute the following Contributed capital b. Legal capital Total shareholders' equity a. C.
Question 16 Real Razel company's capital structure at January 1, 20A was as follows: Shares issued and outstanding for Ordinary share capital, 400,000 and for preference share capital, 100,000. On October 1, 20A, Real Razel issued a 10% share dividend on its ordinary share, and paid annual cash dividend of P400,000 on its preference share. The preference share capital is noncumulative, nonparticipating and nonconvertible. Net income for the year ended December 1, 20A was P3,840,000. What amount should be reported as basic earnings per share? CHOICES: 8.20 8.72 9.36 7.82
4. An entity showed the following data:Share capital, par value P50 5,000,000Share premium 200,000Retained Earnings 2,000,000Market value of share on declaration date 75Market value of share on distribution date 85Treat each item independently: a. If the entity would declare a 1 for 5 share dividend, what amount would be charged to retained earnings? b. What amount will be credited to share premium if the entity would declare 15% share dividend?
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
Problem 5-7 (IAA) Bronze Company provided the following information at year-end: Share capital Share premium Cumulative translation adjustment - debit Treasury shares, at cost Retained earnings Cumulative unrealized gain on option contract designated as cash flow hedge 6,000,000 3,500,000 2,000,000 700,000 1,500,000 600,000 What is the shareholders' equity at year-end? a. 9,500,000 b. 8,900,000 c. 7,400,000 d. 7,500,000
Question 1 The following information relates to a company listed on Luse- Mungwi PLC ZMK Issued share capital (1000 shares) Share premium. Reserves. Share holders funds. 6% Irredeemable Debentures. 9% Redeemable Debentures. Bank loan. Total Long Term Liabilities. Million 4 000 2 600 290 6,890 2,800 2,900 1 000 6 700 The current cum interest market value per k100 units is k103 and k105 fir the 6% and 9% Debentures respectively. The 9% Debenture is redeemable at par in 10 years time. The bank loan bears interest rate of 2% above the base rate (current base rate is 15%). The current ex-div market price of shares is k1, 100 and a dividend of K100 per share which is expected to grow at a rate of 5% per year has just been paid. The effective corporation tax rate for Mungwi is 30%. Required: A) Calculate the effective after tax weighted Average Cost of Capital (WACC) fir Mungwi PLC
Item Nos. 14 and 15 are based on the following information: revealed the following information: Preference Share Capital, par P 100 Preference Share Premium- Ordinary Share Capital- Ordinary Share Premium-- Subscribed Ordinary Shares Retained Earnings Ordinary Subscriptions Receivable 000.00S The shareholders' equity section of Charlie Company's balance sheet P 2,300,000 805,000 5,250,000 2,750,000 50,000 -- 1,900,000 400,000 - _____
EXERCISE 6 The Conception Enterprises, Inc. had the following shareholder's equity balances at December 31,2020: Preference Share Capital, P 20 par, 100, 000 shares authorized P 2,000,000 Ordinary Share Capital, P 30 par, 100, 000 shares authorized P 1,800,000 Share Premium- Preference Share 160,000 Share Premium- Ordinary Share 250,000 Retained Earnings 800,000 The preference share is convertible into ordinary share. REQUIRED: Journalize the conversion of 10,000 preference shares under each of the following independent assumptions: a.) Preference share is convertible into ordinary shares on a share basis. b.) 2 shares of preference are convertible into one ordinary share.
Problem 6: Preference Shares, Definite Life The entity received P4,500,000 cash from the issuance of its 9%, 10-year P5,000,000 par value preference shares. How much is the cost of the preference shares using the following methods? 12. Yield-to-maturity formula Your answer
Exercise 5. Various share capital transactions Joshua Company has two classes of share capital outstanding: 10%, P50 par preference share capital and P10 par ordinary share capital. At December 31, 2019, the following accounts were included in the shareholder's equity: Preference Share Capital, 100,000 shares Ordinary Share Capital, 1,000,000 shares Preference Share Premium P5,000,000 Ordinary Share Premium P10,000,000 Retained Earnings P4,500,000 The following transactions have affected the shareholder's equity of the company during the year 2020: Jan. 1 Issued 15,000 preference shares at P60 per share. Feb.1 Issued 25,000 ordinary shares at P25 per share. July 1 Reacquired 20,000 ordinary shares at P14 per share. Oct. 31 Reissued 15,000 treasury shares at P16 per share. Dec.31 Profit for the year is P2,500,000. Prepare the journal entries of the foregoing transactions and prepare the Shareholder's equity section of the Company as of December 31, 2020.