Prepare the journal entries to record these transactions

Reference no: EM132935197

Question 1. B. Sorima Corporation began operations on January 1, 2020. The following transactions relating to shareholders' equity occurred m the first two years of the corporation's operations

2020

Jan 1 Authorized the issuance of 2 million shares of P5 par value ordinar shares and 100,000 shares of P100 par value, 10% cumulative preference shares.
2 Issused 200,00 ordinary shares for P 12 cash per share.

3. Issused 100,00 ordinary shares in exchange for a building valued at P820,000 and merchandise inventory valued at P 380,000

4. Paid P10,000 cash to the corporation founders for organization activities.
5. Issued 12,000 preference shares for P110 cash per share.

2021
June 4 Issued 10,000 ordinary shares br P15 cash per share.
14. Issued 20,500 preference shares for P120 cash per share.

Required:
a. Prepare the journal entries to record these transactions.

b. Prepare the share capital section of the shareholders equity as at December 31, 2020 and December 31, 2021.

Question 2. The shartholder's equity section of Nazario Freight Ewes, Inc. as at December 31, 2020 appeared as follows

6% Preference Shares, P75 Par, 200,000 shares authorized 700,000 shares issu.
Ordinary Shares, P5 stated value, 500,000 shares authorized shares issued and shares
outstanding 500.000
Share Premium - Ordinary 600.000
Retained E arnings 1.000,000
Total Share Capital and Retained E amings
Less: Treasurry Stock - Ordinary, 10,000 shares, at cost 40.000
Total Stockholders' Equity P

Required: PMVide the answers to each of the following questions:
a. What is the total issue price of the preference shares?

b. How many ordinary shares were issued?

c. How many ordinary shares are outstanding?

d. What was the total issue price of the ordinary shares?

e. What is the total legal capital of the corporation?

f. What is the total contributed capital of the corporation?

g What is the total shareholders' equity?

h. For how much per share was the treasury stock purchase?

i. What is the amount of the required preference dividends?

Attachment:- question.rar

Reference no: EM132935197

Questions Cloud

Prepare the appropriate journal entry to record disposition : Prepare the appropriate journal entry to record the disposition of the delivery truck. The delivery truck originally cost $26,000 in 2021 and $4,000 was spent

Prepare appropriate journal entries to update depreciation : Prepare the appropriate journal entries to update depreciation and then to remove the equipment from the books of Lui Company on March 31, 2028.

Prepare journal entries to record transactions for johnson : Prepare journal entries to record the above transactions. Date all entries at December 31, 2020. Inventory costing $425,000 was sold on credit

Describe three different ways starvation : Describe three different ways starvation may develop in less developed countries by giving an example of each.

Prepare the journal entries to record these transactions : Prepare the journal entries to record these transactions and Prepare the share capital section of the shareholders equity as at December 31, 2020 and December

Effective in driving photosynthesis : What color of light is least effective in driving photosynthesis? Explain why it is least effective.

Find community diversity of macroinvertebrates : You are testing an unknown pollutant as a condition, but you will only know that the levels are none, moderate and severe.

Prepare any adjusting entries necessary as a result : Prepare any adjusting entries necessary as a result of the bank reconciliation. Deposits of March 30 and 31 not yet recorded by bank $5,240.

Describe the general structure of one of monomers : Describe the general structure of one of these monomers, including the characteristic that would allow it to interact with a negatively charged monomer in a sec

User Account

All Pages