Prepare journal entries to record the foregoing transactions

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Reference no: EM132854741

Question 1: Shareholder''s Equity Transactions and Statement of Financial Position Presentation.

The Shareholders'' Equity of M. Gangoso Corporation at Jan 1, 2019, appears below: 8% Preference shares, P250 par, 15,000 shares authorized, 5,800 shares issued and outstanding = P1,450,000 Share premium preference = P870,000 Ordinary shares, P100 par, 200,000 shares authorized, 40,000 shares issued and outstanding = P4,000,000 Share Premium Ordinary = P2,400,000 Retained earnings = P2,700,000 During 2019, the following transactions occurred: Jan. 10 - Issued 26,000 ordinary shares for P180 cash per share. Jan. 23 - Purchased 6,000 ordinary shares for the treasury at P200 per share. Mar. 2 - Shareholders donated 4,000 ordinary shares to the corporation. Mar. 14 - Sold 1/2 of the treasury shares acquired last January 23 for P210 per shares. Mar. 14 - Sold the donated shares at P210 per shares. July 15 - Issued 3,200 preference share to acquire special equipment with a fair market value of P1,440,000. Sept. 15 - Received subscription to 18,000 ordinary shares at P250 share. Oct. 15 - Received cash payment from each subscriber for 40% of the ordinary shares subscription price. Nov. 15 - Received the balance due on the Sept. 15 shares subscription in cash and issued the stock certificates. Dec. 15 - Closed profit of P522,000 from the Income summary account to retained earnings.

Required:

1. Set up T-accounts for the shareholders'' equity accounts at the beginning of the year and enter january 1 balances.

2. Prepare journal entries to record the foregoing transactions and post to T-accounts. Determine the ending balances for the shareholders''equity accounts.

3. Prepare the Dec. 31, 2019 shareholder''s equity section of the statement of financial position.

Question 2: Shareholder''s Equity Transactions and Statement of Financial Position Presentation.

Required: 1. Set up T-accounts for the shareholders'' equity accounts at the beginning of the year and enter january 1 balances.

2. Prepare journal entries to record the foregoing transactions and post to T-accounts. Determine the ending balances for the shareholders''equity accounts.

3. Prepare the Dec. 31, 2019 shareholder''s equity section of the statement of financial position.

Question 3: Shareholder''s Equity Transactions and Statement of Financial Position Presentation.

Required: 1. Set up T-accounts for the shareholders'' equity accounts at the beginning of the year and enter january 1 balances.

2. Prepare journal entries to record the foregoing transactions and post to T-accounts. Determine the ending balances for the shareholders''equity accounts.

3. Prepare the Dec. 31, 2019 shareholder''s equity section of the statement of financial position.

Reference no: EM132854741

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