Reference no: EM132987362
The following are interrelated transactions of NI Company:
Issued Ordinary Share- 2017 (Start of operation) 100,000 shares, 100 par value per share.
1. Assuming the following issuances of NI Company for February 2, 2018. Given that the par value per share is 100.
- Issuance of 4,000 shares to SAN at par for cash.
- Issuance of 10,000 shares at 110 per share for cash. Stock issue costs that were paid by NI amounted to 110,000.
2. NI Company has the following issuances for March 14, 2019. Par value per share is 100.
- Issued 3,000 shares of stock for machinery: The machinery has a fair value of 350,000 while the stock is selling at 105 per share.
- Issued 2,000 shares of stock for patent: The stock is selling at 105 per share.
3. On November 1, 2020, NI Company declared equipment as property dividend payable on February 15, 2021. The cost of the equipment is 900,000 and the accumulated depreciation is 200,000. Data relating to the fair values of the equipment are as follows:
Date Fair value
November 1 ,2020 600,000
December 31, 2020 800,000
February 15, 2021 780,000
4. On January 1, 2021, NI Company issued 3,000, for an outstanding bank loan of 150,000. On this date, shares are quoted at 90 per share.
5. Treasury shares transaction by NI on 2021: Use cost method.
4.1 5,000 acquired at 160 per share. 7/15/2021
4.2 Reissued 2,000 treasury shares at 180 per share. 9/3/2021
6. The company effected a 5 for 1 stock split on the ordinary shares January 1, 2020.
7. NI Company declared a 20% stock dividend on December 31, 2021 and to be issued on March 14, 2022. The market value of the shares is 30.
Problem (I) Journalize all the transactions as of 2022.
Problem (II) Show the computation for the share split.