Reference no: EM132743917
Question: On Jan. 1, 2018, the following accounts and their balances appeared in the ledger of the Fuentes Corporation:
Preference P9 Shares, P100 par, 10,000 shares
authorized, 5,000 shares issued P 500,000
Share Premium-Preference 80,000
Ordinary Shares, P20 par, 100,000 shares
authorized, 75,000 shares issued 1,500,000
Share Premium-ordinary 125,000
Retained Earnings 505,000
At the annual shareholders' meeting on Feb. 11, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately P600,000. The plan provided (a) that the corporation borrow P175,000, (b) that 1,000 shares of the unissued preference shares be issued through an underwriter, and (c) that a building valued at P280,000, and the land on which it is located, valued at P50,000, be acquired in accordance with preliminary negotiations by the issuance of 15,000 ordinary shares. The plan was approved by the shareholders and the accomplished by the following transactions:
Mar. 3 Issued 15,000 ordinary shares in exchange for land and a building according to the plan.
Mar. 15 Issued 1,000 preference shares, receiving P105 per share in cash from the underwriter.
Mar. 31 Borrowed P175,000 from Philippine National Bank, giving a 12% mortgage note.
No other transactions occurred during March.
Required: 1. Journalize the entries to record the foregoing transactions.
2. Prepare the shareholders' equity section of the statement of financial position as ta March 31, 2018.
Calculate the number of equivalent units of production
: Department R had 4,400 units in work in process that were 70% completed as to labor and overhead at the beginning of the period; 29,300 units of direct material
|
List the features of organizations
: List the features of organizations that would find ABC particularly useful for product costing. Briefly explain the reasons why ABC is particularly suitable.
|
Why it is important that customs officials must follow
: Why it is important that customs officials must strictly follow or comply with the basis of customs valuation rather than doing the traditional benchmarking.
|
Show the computation of excess and allocation of excess
: On January 1, 2019 Vacker Co. acquired 70% of Carper Inc. by paying $650,000. On this date, the NCI fair value was $162,000. Carper reported common stock.
|
Journalize the entries to record the foregoing transactions
: On Jan. 1, 2018, the following accounts and their balances appeared in the ledger of the Fuentes Corporation: Preference P9 Shares, P100 par, 10,000 shares.
|
Identify distinctions between budgets and standards
: Budgets and standards are not the same thing. They have different purposes and are set up and used in different ways; yet a specific relationship exists between
|
Explain the reasons for selecting the issues
: Consider the facts above and state two matters that require consideration when deciding about tendering for the audit of Pink.
|
Discuss the classification and disclosure of transactions
: Celltower is a public limited company that provides mobile telecommunication services. Celltower has invested heavily in network licences and transmission.
|
Prepare journal entry to record the receipt of the interest
: On July 1, 2018, Wolfpack Corporation purchased securities which it intends to buy and sell frequently. These securities consisted of Todd Corporation 10%.
|