User Account

All Pages

What is the par value of the ordinary shares

Assignment Help Accounting Basics
Reference no: EM133177786

Question - The following data were compiled prior to preparation of the financial statements of Pauleen Company as of December 31, 2021:

Excess of par-ordinary share P500,000

Excess of par-preference share 400,000

Subscribed ordinary share capital, 25% partially paid 250,000

Subscription receivable-preference (payable June 30, 2022) 450,000

Subscription receivable-ordinary (payable June 30, 2023) 187,500

Subscribed preference share capital, 10% partially paid 500,000

Donated capital 600,000

Ordinary share capital, par P100 8,000,000

Treasury shares, 10,000 shares 800,000

Preference share capital, par P100 1,000,000

Accumulated profits, unappropriated 1,500,000

Accumulated profits, reserved:

For bond redemption P2,000,000

For plant expansion 2,500,000

For treasury share 800,000

Additional information:

Jan 31, 2022 Issued 6,000 shares of its P100 par ordinary share to Max L as compensation for P1,000 hour of legal services performed. Max L usually bills P500 per hour for legal services. On this date of issuance, Pauleen share was selling at a public trading at P150 per share.

Mar 1, 2022 Exchanged 20,000 shares of its ordinary shares for land. A few months ago, the land was appraised by an independent appraiser at P3,000,000. Boom shares are currently traded at the stock exchange at P170.

May 9, 2022 Collected fully half of the subscribed ordinary share capital for which issued the stock certificate.

May 25, 2022 Reacquired 12,000 ordinary shares at P120 per share.

Jun 1, 2022 Sold 5,000 Treasury shares at P100. The company uses FIFO method.

Jun 30, 2022 Shareholders approved a 2 for 1 ordinary share split. Received full payment of the subscribed preference share for which stock certificates were issued.

Sep 30, 2022 Sold 7,500 treasury shares at P100 per share.

Dec 1, 2022 Retired 5,000 of the remaining treasury shares.

Dec 31,2022 Net income for the year is 2 million.

Dec 31, 2022 Appropriated the retained earnings for the treasury shares cost.

Required -

A. Journalize the 2022 transactions.

B. Prepare the shareholders' equity section in good form.

C. Give the correct answer for each question below:

1. What is the total contributed capital as of December 31, 2021?

2. What is the total legal capital as of December 31, 2021?

3. What is the total share premium as of December 31, 2021?

4. What is the total retained earnings as of December 31, 2021?

5. How many ordinary shares are outstanding and issued on December 31, 2021 respectively?

6. How many preference shares are outstanding and issued on December 31, 2021 respectively?

7. How much is the shareholder's equity of Pauleen on December 31, 2021?

8. How much is the land balance as of December 31, 2021?

9. By what amount should the share premium account of Pauleen increase/decrease as a result of the issuance on Jan 31, 2022?

10. By what amount should the share premium account of Pauleen increase/decrease as a result of the issuance on Mar 1, 2022?

11. How many ordinary shares are outstanding and issued on December 31, 2022 respectively? 12. How much will be the balance of the appropriated retained earnings on December 31, 2022? 13. What is the total contributed capital as of December 31, 2022?

14. What is the par value of the ordinary shares and preference shares on December 31, 2022 respectively?

15. What is the total legal capital as of December 31, 2022?

16. How much is the balance of Treasury shares as of December 31, 2022?

17. What is the total share premium as of December 31, 2022?

18. What is the total retained earnings as of December 31, 2022?

19. If the ordinary share is no-par, how much is the total legal capital of the Company in December 31, 2021 and December 31, 2022 respectively?

Reference no: EM133177786

Questions Cloud

Completing a food and beverage order sheet : When completing a food and beverage order sheet as part of your daily responsibilities, what type of information are you required to record on this sheet.
How much is the combined inventory to be presented : How much is the combined inventory to be presented in the combined Statement of Financial Position as of December 31, 2022
Develop the leadership in action : 1. What competitive challenges motivated Dow Chemical to develop the Leadership in Action?
Advantages of rehiring method : Mass interview is a good method for comparing candidates although it has some disadvantages, such not gives the interviewers enough time to assessing candidates
What is the par value of the ordinary shares : May 25, 2022 Reacquired 12,000 ordinary shares at P120 per share. What is the par value of the ordinary shares and preference shares
Canadian occupational health and safety discussion : Jerry phoned today to say that he is going to be off work for a while. He is sending in the doctor's note but basically it looks like he is going to be off for
What is the master budget variance for august : Actual rental applications in August 2022 were 270. Phoenix paid $8,100 for 390 hours of professional labor. What is the master budget variance for August
Define the problem that linda dor enterprises is facing : Define the problem that Linda Dor Enterprises is facing. Is there alignment between the business strategy, structure, processes, people and rewards? (internal a
Health and safety in the work area : Ensuring that the employee is safe and under conditions that do not affect their health is a task for the human resources department of any institution.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What amount should be reported as cash

The entity has agreed to maintain a minimum balance of P200,000 in the unrestricted current bank account. What amount should be reported as cash

  Prepare the amortization schedule for this loan

Given the present value of annuity factor of Re. 1 for 3 years at 20% to be 2.1065, prepare the amortization schedule for this loan

  Prepare a statement of cash flows for March

Received monthly invoice for dry cleaning expense for March (to be paid on April 10), $13,500. Prepare a statement of cash flows for March

  Prepare the wage entry to record the transaction

If, with eight years, remaining for bonds to mature, the company withdraws them in the amount of $ 56 million, prepare the wage entry to record the transaction.

  Income effects of reject opportunity of independent practice

Suppose Adessa prefers less risk and chooses to stay an employee. Show a tabulation of the income effects of rejecting the opportunity of independent practice.

  During april the production department of a process

during april the production department of a process manufacturing system completed a number of units of a product and

  Prepare the stockholders equity section at December

The preferred stock was issued for land having a fair value of $140,000. Prepare the stockholders' equity section at December 31, 2017

  Question on rate of return

The ABC Co. has no debt in its capital structure, a beta of 0.8, and raises all funds through sale of common stock. The current market rate for similar stock is 14% and the risk-free rate is 6%.

  Create income statement and balance sheet

The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. Create income statement and balance sheet

  What is the EAR of your investment

Suppose you invest $100 for 9 months at 3.25% per annum compounded quarterly. What is the EAR of your investment

  Prepare the journal entry to reflect the initial investment

Santana's banker is willing to lend her $116,000 on a 9%, 10-year note payable. Prepare the journal entry to reflect the initial investment

  What generally accepted accounting principles dominate the

1. what generally accepted accounting principles dominate the issue of asset valuation?2. discuss why healthcare

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd