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Corporation Problems-1

The document contains examples of accounting entries for issuing shares with different characteristics: 1) Shares with par value - Entries record cash received in exchange for shares issued at par value, with any premium recorded separately. 2) Shares with stated value - Similar to par value shares but a stated value is used instead of par. Premium is recorded for amounts above stated value. 3) Shares without par or stated value - Entire cash amount received is recorded as an increase to share capital. The examples demonstrate accounting for share issuances, donations, treasury shares, and subscriptions receivable.

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Avia Chelsy Deang
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3K views18 pages

Corporation Problems-1

The document contains examples of accounting entries for issuing shares with different characteristics: 1) Shares with par value - Entries record cash received in exchange for shares issued at par value, with any premium recorded separately. 2) Shares with stated value - Similar to par value shares but a stated value is used instead of par. Premium is recorded for amounts above stated value. 3) Shares without par or stated value - Entire cash amount received is recorded as an increase to share capital. The examples demonstrate accounting for share issuances, donations, treasury shares, and subscriptions receivable.

Uploaded by

Avia Chelsy Deang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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PROBLEM 1

MEMORANDUM ENTRY METHOD

1. the ordinary shares has a P100 par value.

DATE DEBIT
Jan-01 Roa Company is authorized to issue 100,000 ordinary shares
with P100 par value, P10,000,000.

Feb-12 Cash (1,000 x 100) 100,000


Ordinary Share Capital (1,000 x 100)

Jul-10 Cash (5,000 x 126) 630,000


Ordinary Share Capital (5,000 x 100)
Share Premium - Ordinary Shares (5,000 x 26)

Nov-05 Cash (7,500 x 140) 1,050,000


Ordinary Share Capital (7,500 x 100)
Share Premium - Ordinary Shares (7,500 x 40)

ROA CORPORATION
SHAREHOLDERS' EQUITY
December 31, 2018

Ordinary Share Capital, P100 par, 100,000 shares


authorized, 13,500 shares issued 1,350,000
Share Premium - Ordinary Share 430,000
Total 1,780,000

2. the ordinary shares has a P10 stated value

DATE DEBIT
Jan-01 Roa Company is authorized to issue 100,000 ordinary shares
with P10 stated value, P1,000,000.

Feb-12 Cash (1,000 x 100) 100,000


Ordinary Share Capital (1,000 x 10)
Share Premium - Ordinary Shares(1,000 x 90)

Jul-10 Cash (5,000 x 126) 630,000


Ordinary Share Capital (5,000 x 10)
Share Premium - Ordinary Shares(5,000 x 116)

Nov-05 Cash (7,500 x 140) 1,050,000


Ordinary Share Capital (7,500 x 10)
Share Premium - Ordinary Shares (7,500 x 130)

ROA CORPORATION
SHAREHOLDERS' EQUITY
December 31, 2018

Ordinary Share Capital, no par, stated value P10,


100,000 shares authorized, 13,500 shares issued 135,000
Share Premium - Ordinary Share 1,645,000
Total 1,780,000

3. the ordinary shares has no par or stated value

DATE DEBIT
Jan-01 Roa Company is authorized to issue 100,000 ordinary shares
with no par value and stated value.

Feb-12 Cash (1,000 x 100) 100,000


Ordinary Share Capital (1,000 x 100)

Jul-10 Cash (5,000 x 126) 630,000


Ordinary Share Capital (5,000 x 126)

Nov-05 Cash (7,500 x 140) 1,050,000


Ordinary Share Capital (7,500 x 140)

ROA CORPORATION
SHAREHOLDERS' EQUITY
December 31, 2018

Ordinary Share Capital, no par, no stated value,


100,000 shares authorized 13,500 shares issued 1,780,000
Total 1,780,000

PROBLEM 4

DATE DEBIT
Jan-01 The corporation is authorized to issue 400,000 shares,
P85 par value ordinary shares, P34,000,000

Feb-10 Cash (75,000 x 86) 6,450,000


Ordinary Share Capital (75,000 x P85)
Share Premium - Ordinary Shares

Feb-27 Land 920,000


Building 1,087,500
Ordinary Share Capital (21,500 x 85)
Share Premium - Ordinary Shares

Mar-03 Cash (28,000 x 86.50) 2,422,000


Ordinary Share Capital (28,000 x 85)
Share Premium - Ordinary Shares (28,000 x 1.50)

FERNANDO CORPORATION
SHAREHOLDERS' EQUITY
DECEMBER 31,

Ordinary Share Capital, 400,000 shares authorized,


P85 par value, 124,500 shares issued 10,582,500
Share Premium - Ordinary Shares 297,000
Total 10,879,500

PROBLEM 10

DATE DEBIT

Jan-01 The corporation is authorized to issue 125,000 shares,


P10 par value ordinary shares, P1,250,000

Feb-01 Cash (25,000 x 15) x 1/3 125,000


Subscriptions Receivable (25,000 x 15) *2/3 250,000
Subscribed Ordinary Share Capital (25,000 x 10)
Share Premium - Ordinary Share Capital

Feb-15 Cash (10,000 x 18) 180,000


Ordinary Share Capital (10,000 x 10)
Share Premium - Ordinary Shares

Mar-01 Cash 125,000


Subscriptions Receivable
Mar-19 Equipment 3,800
Ordinary Share Capital (200 x 10)
Share Premium - Ordinary Shares

Apr-01 Cash 125,000


Subscription Receivable

Apr-01 Subscribed Ordinary Share Capital 250,000


Ordinary Share Capital (25,000 x 10)

GABAYAN, INC
SHAREHOLDERS' EQUITY
DECEMBER 31, 2019

Ordinary Share Capital, 125,000 authorized shares, P10


par value, 35,200 shares issued 352,000
Share Premium - Ordinary Shares 206,800
Total 558,800

PROBLEM 15

DATE DEBIT

Jan-04 Treasury Shares (24,000 x 7) 168,000


Cash

Jan-10 Cash (4,000 x 9) 36,000


Treasury Shares (4,000 x 7)
Share Premium - Treasury Shares

Jan-29 Cash (14,000 x 6) 84,000


Share Premium - Treasury Shares 8,000
Retained Earnings 6,000
Treasury Shares (14,000 x 7)

Share Capital
Ordinary Shares, P4 par, 200,000 shares authorized,
150,000 shares issued, 144,000 outstanding
Share Premium
Total Share Capital
Retained Earnings
Total
Less: Treasury Shares (6,000 x 7)
Total Shareholders' Equity

Jan-31 Cash (6,000 x 7) 42,000


Treasury Shares (6,000 x 7)

REFOZAR CORPORATION
PARTIAL STATEMENT OF FINANCIAL POSITION
January 31, 2019

Share Capital
Ordinary Shares, P4 par, 200,000 shares authorized,
150,000 shares issued and outstanding
Share Premium
Total Share Capital
Retained Earnings
Total Shareholders' Equity

PROBLEM 18

Ordinary Shares, P15 par, 20,000 shares authorized,


18,000 shares issued
Subscriptions Receivable
Subscribed Ordinary Shares
Retained Earnings
Share Premium
Treasury Shares, 1,000 shares, at cost

1) Total authorized ordinary shares


2) Total unissued ordinary shares (20,000 - 18,000)
3) Total issued ordinary shares
4) Ordinary shares subscribed
5) Total shareholders' equity
6) Number of shares issued
7) Number of shares subscribed
8) Number of shares in treasury
9) Number of outstanding shares

PROBLEM 21

DATE DEBIT
Jan-10 Cash (16,000 x 180) 2,880,000
Ordinary Share Capital (16,000 x 100)
Share Premium - Ordinary Shares (16,000 x 80)

Jan-23 Treasury Shares (6,000 x 200) 1,200,000


Cash

Mar-02 Received 4,000 ordinary shares from shareholders as donations

Mar-14 Cash (3,000 x 210) 630,000


Treasury Shares (3,000 x 200)
Share Premium - Treasury Shares (3,000 x 10)

Mar-14 Cash (4,000 x 210) 840,000


Donated Capital

Jul-15 Equipment 1,440,000


Preference Share Capital (3,200 x 250)
Share Premium - Preference Shares

Sep-15 Subscriptions Receivable (18,000 x 250) 4,500,000


Subscribed Ordinary Share Capital (18,000 x 100)
Share Premium - Ordinary Shares (18,000 x 150)

Oct-15 Cash (4,500,000 x 40%) 1,800,000


Subscriptions Receivable

Nov-15 Cash (4,500,000 x 60%) 2,700,000


Subscriptions Receivable

Nov-15 Subscribed Ordinary Shares 1,800,000


Ordinary Share Capital (18,000*100)

Dec-31 Income Summary 522,000


Retained Earnings

PROBLEM 22

Preference Shares, ___50___ par, 100,000 authorized,


issued, and outstanding
Ordinary Shares, P1 par, 5,000,000 shares authorized,
_2,300,000__ shares issued, _2,232,000__ shares outstanding
Share Premium - Ordinary
Retained Earnings
Total Shareholders' Equity and Retained Earnings
Treasury Shares, 68,000 shares, at cost
Total Shareholders' Equity
JOURNAL ENTRY METHOD

CREDIT DATE
Jan-01 Unissued Ordinary Share Capital
Authorized Ordinary Share Capital

Feb-12 Cash (1,000 x 100)


100,000 Unissued Ordinary Share Capital

Jul-10 Cash (5,000 x 126)


500,000 Unissued Ordinary Share Capital (5,000 x 100)
130,000 Share Premium - Ordinary Shares (5,000 x 26)

Nov-05 Cash (7,500 x 140)


750,000 Unissued Ordinary Share Capital (7,500 x 100)
300,000 Share Premium - Ordinary Shares (7,500 x 40)

ROA CORPORATION
SHAREHOLDERS' EQUITY
December 31, 2018

Authorized Ordinary Share Capital, P100 par, 100,000


shares
Less: Unissued Ordinary Shares, 86,500 shares
Share Premium - Ordinary Shares
Total

CREDIT DATE
Jan-01 Unissued Ordinary Share Capital
Authorized Ordinary Share Capital

Feb-12 Cash (1,000 x 100)


10,000 Unissued Ordinary Share Capital (1,000 x 10)
90,000 Share Premium - Ordinary Shares (1,000 x 90)

Jul-10 Cash (5,000 x 126)


50,000 Unissued Ordinary Share Capital (5,000 x 10)
580,000 Share Premium - Ordinary Shares (5,000 x 116)

Nov-05 Cash (7,500 x 140)


75,000 Unissued Ordinary Share Capital(7,500 x 10)
975,000 Share Premium - Ordinary Shares (7,500 x 130)

ROA CORPORATION
SHAREHOLDERS' EQUITY
December 31, 2018

Authorized Ordinary Share Capital, no par, stated value, P10


100,000 shares
Less: Unissued Ordinary Shares, 86,500 shares
Share Premium - Ordinary Shares
Total

CREDIT DATE

100,000

630,000

1,050,000

CREDIT
6,375,000
75,000
In order of priority:
1 Fair value of assets received
2 Fair value of shares issued
1,827,500 3 Par value of shares issued
180,000

2,380,000
42,000

CREDIT

250,000
125,000

100,000
80,000

125,000
2,000
1,800

125,000

250,000

CREDIT REFOZAR CORPORATION


PARTIAL STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2018
168,000
Share Capital
Ordinary Shares, P4 par, 200,000 shares authorized,
28,000 150,000 shares issued and outstanding
8,000 Share Premium
Total Share Capital
Retained Earnings
Total Shareholders' Equity

98,000

PHP 600,000
375,000
975,000
359,000
1,334,000
42,000
PHP 1,292,000

42,000

PHP 600,000
375,000
975,000
359,000
PHP 1,334,000

PHP 270,000
17,000
27,000
200,000
95,000
25,000

300,000
30,000
270,000
27,000
PHP 550,000
18,000 shares

M. GANGOSO CORPORATION
CREDIT SHAREHOLDERS' EQUITY
JANUARY 1, 2019
1,600,000
1,280,000 8% Preference Shares, P250 par, 15,000 shares
authorized, 5,800 shares issued and outstanding
Share Premium - Preference
1,200,000 Ordinary Shares, P100 par, 200,000 shares
authorized, 40,000 shares issued and outstanding
Share Premium - Ordinary
Retained Earnings
Total Shareholders' Equity
600,000
30,000

M. GANGOSO CORPORATION
840,000 SHAREHOLDERS' EQUITY
DECEMBER 31, 2019

800,000 Share Capital


640,000 8% Preference Shares, P250 par, 15,000 shares
authorized, 9,000 shares issued and outstanding
Share Premium - Preference
1,800,000 Ordinary Shares, P100 par, 200,000 shares
2,700,000 authorized, 74,000 shares issued and 71,000 outstanding
Share Premium - Ordinary
Share Premium - Treasury
1,800,000 Donated Capital
Total Share Capital
Retained Earnings
2,700,000 Total
Less: Treasury Shares, 3,000 shares
Total Shareholders' Equity
1,800,000

522,000

5,000,000

2,300,000
17,000,000
18,600,000
42,900,000
- 748,000
42,152,000
DEBIT CREDIT
10,000,000
10,000,000

100,000
100,000

630,000
500,000
130,000

1,050,000
750,000
300,000

10,000,000
8,650,000 1,350,000
430,000
1,780,000

DEBIT CREDIT
1,000,000
1,000,000

100,000
10,000
90,000

630,000
50,000
580,000

1,050,000
75,000
975,000

ated value, P10


1,000,000
865,000 135,000
1,645,000
1,780,000

DEBIT CREDIT
res authorized,
PHP 600,000
375,000
975,000
365,000
PHP 1,340,000
PHP 1,450,000
870,000

outstanding 4,000,000
2,400,000
2,700,000
PHP 11,420,000

PHP 2,250,000 2,250,000


1,510,000

71,000 outstanding 7,400,000 7,400,000


6,380,000
30,000
840,000
18,410,000
3,222,000
21,632,000
600,000
PHP 21,032,000 21,032,000

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