Reference no: EM132906884

Question - For 1-6 Love Corporation provided the following data during the first year of operations:

a. Sold 30,000 preference shares, 12%, P100 par, at P140.

b. Sold 100,000 ordinary shares of P50 par at P55

c. Purchased and retired 10,000 preference shares at P120.

d. Purchased 15,000 ordinary shares at P52 to be held as treasury.

e. Sold 10,000 treasury ordinary shares at P60.

f. Shareholders donated to the entity 20,000 ordinary shares when shares had a market price of P60. One half of these shares were sold for P65.

1. How many ordinary shares are outstanding after the 6 transactions?

2. How much is the balance of the share premium preference after the 6 transactions?

3. How much is the balance of the Ordinary Share Capital after the 6 transactions?

4. How much is the balance of the share premium treasury after the 6 transactions?

5. How much is the balance of the Preference Share Capital after the 6 transactions?

6. How much is the balance of the treasury stock after the 6 transactions?

7. Based on the following account balances; Preference Shares; P10,000 shares P100 par, P1,000,000; Ordinary Shares, 200,000 shares authorized, 100,000 shares issued P30 par, P3,000,000; Share Premium preference; P200,000; Share Premium Ordinary, P1,000,000; Retained Earnings. The preference share is converted into ordinary shares in the ratio of 1:5. What is the amount of Ordinary Shares to be recorded in the books of the corporation?

8. A company shows P22,000 of insurance expense for the fiscal year. The company records show a balance in prepaid insurance at the beginning of the year of P5,000 and a balance at the end of the year of P3000. What amount of cash was paid for the insurance during the year?

9. Abe subscribed to 4000 shares, P100 par and paid 240,000 initially. After several demands, Abe was not able to pay the subscription balance defaulted and became delinquent. The issuing company offered the unpaid subscriptions for bid for a price of P200.000 inclusive of the unpaid balance, interest, P10,000 and incidental expenses. The bidders are X-2700 shares Y-2,800 shares: Z- 3.000 shares. How many shares will eventually be given to Abe atter his default?

10. How much is the total cash payment on July 22nd.

Marshall Supplies is a janitorial supply store. Marshal Supplies use perpetual inventory. The following four transactions during the month of July.

a. On July 4th. Marshal purchases inventory for sale to from Tidy Wholesaler for P8500.00 with terms 1/10, n/30.

 

b. On July 5th Marshall pays Express Transfer P45 for freight-in on the July 4 order.

c. On July 12th Marshall buys an additional. P11985 inventory from Tidy Wholesaler with terms 1/10, n/30.

d. On July 22nd, Marshall pays Tidy Wholesaler the balance due

Calculate the total cash Payment on July 22nd. Round to nearest centavo.

11. Determine the amount of discount taken on May 23rd. round to the nearest centavo. Example 300.95.

Bargain wholesalers sells pet supplies to retailers including pet world supplies

Bargain wholesalers uses perpetual inventory. The three transactions during the month of May

a. On May 4th bargain wholesalers sells inventory to pet world supplies for P8250.00 with terms 1/10, n/30 The cost of the merchandise is P5755.00.

b. On May 13th, bargain wholesalers sells an additional P10,985 in inventory to pet world supplies with terms 1/10, n/30. The cost of the merchandise is P6925.00.

c. On May 23rd, bargain wholesalers receives a check from pet world supplies paying the balance due.

For 12-13

On January 1, 2019 BeEsAy Corp issued redeemable preference share equal to par of P3,000,000 which is at the option of the shareholders. There were no dividends to be paid on these shares but the shareholders have the right to require BeESAy Corp to redeem the shares, on January 1, 2021 for a redemption price of P3,350,000 The rate which is implicit to this agreement is 5% NOT COMPOUNDED

12. How much is the total liability to be paid on January 1, 2021?

13. How much is the gain or loss on Redemption of Preference Shares?

14. How many of the transactions given below will be recorded in the general journal? Answer should be either one two three four five six seven (etc)

Read each transaction and match the appropriate journal that it should be recorded in

1. Owner withdrew supplies

2. Sale made on account

3. Payment to vendor on account

4. Payment received from customer on account

5. Purchases on account

6. Adjusting journal entry for supplies used

7. Owner withdrew cash

8. Company borrows money from bank

9. Record monthly depreciation