Reference no: EM133153974
Problem 1 - The stockholders' equity section of Kookie Co. revealed the following information on December 31, 2022.
Preference stock, P50 par 2,300,000
Share premium - preference 805,000
Ordinary stock, P15 par 5,250,000
Share premium - ordinary 2,750,000
Subscribed ordinary stock 150,000
Retained earnings 1,900,000
Subscriptions receivable - ordinary (collectible next month) 400,000
Required: Answer the following questions with supporting computations:
1. How much is the legal capital?
2. How much is the total paid in capital?
3. What is the amount of the stockholders' equity on 12/31/2022?
4. How many preference shares were issued?
5. How many ordinary shares were subscribed?
Problem 2 - The following transaction occurred during year 2022 for Z Corporation:
Jan 2 Shares authorized to issue 80,000
Feb 1 Shares issued 60,000
Mar 1 Shares subscribed 10,000
Jun 1 Shares reacquired but was not canceled 5,000
Nov 1 Two for one stock split
Dec 1 15% stock dividend
Required: Determine the following with supporting computations:
1. number of shares issued
2. number of shares outstanding
3. number of shares in treasury
4. number of shares un-issued
5. number of shares subscribed
6. number of shares available for subscription at the end of year 2022.
Problem 3 - Intricate Corporation began year 2021 with the following balances in its shareholders' equity accounts:
Ordinary Shares, P10 par, 500,000 shares authorized,
200,000 shares issued and outstanding P2,000,000
Share Premium-Ordinary 1,000,000
Accumulated Profits (losses) 5,000,000
Total P8,000,000
All outstanding ordinary shares was issued for P15 per share when the corporation was created.
Jan. 10 The board declared a P0.10 cash dividend per share to shareholders of record Jan. 28.
Feb. 15 Paid the cash dividend declared on Jan. 10.
Mar. 31 Declared a 20% share dividend. The market value of the share is P18 per share.
April 15 Distributed the share dividend declared on March 31.
May 1 Purchased 30,000 shares of treasury stock at P20 per share.
June 22 Sold 20,000 treasury shades at P26 cash per share.
July 18 Sold the remaining 10,000 shares of treasury stock at P7 cash per share.
Aug. 1 Intricate Corporation declared a 2 for 1 share split.
Dec. 1 Declared a 10% share dividend when the stocks were selling at P9.50 per share.
Required - Prepare the necessary entries for the transactions above.