The document contains information about various share capital transactions of a company including:
1) Issuance of ordinary and preference shares for cash, land, buildings, and other assets.
2) Redemption of preference shares for cash.
3) Purchase and sale of treasury shares for cash.
4) Calculation of total shareholders' equity after transactions and accounting for retained earnings, dividends, and profit.
The document provides accounting entries for the share transactions according to accounting standards.
The document contains information about various share capital transactions of a company including:
1) Issuance of ordinary and preference shares for cash, land, buildings, and other assets.
2) Redemption of preference shares for cash.
3) Purchase and sale of treasury shares for cash.
4) Calculation of total shareholders' equity after transactions and accounting for retained earnings, dividends, and profit.
The document provides accounting entries for the share transactions according to accounting standards.
The document contains information about various share capital transactions of a company including:
1) Issuance of ordinary and preference shares for cash, land, buildings, and other assets.
2) Redemption of preference shares for cash.
3) Purchase and sale of treasury shares for cash.
4) Calculation of total shareholders' equity after transactions and accounting for retained earnings, dividends, and profit.
The document provides accounting entries for the share transactions according to accounting standards.
The document contains information about various share capital transactions of a company including:
1) Issuance of ordinary and preference shares for cash, land, buildings, and other assets.
2) Redemption of preference shares for cash.
3) Purchase and sale of treasury shares for cash.
4) Calculation of total shareholders' equity after transactions and accounting for retained earnings, dividends, and profit.
The document provides accounting entries for the share transactions according to accounting standards.
Ordinary Share Capital (300 x P500) 150,000 Share Premium - ordinary 30,000
Land 5,000,000 Building 3,000,000 Ordinary Share Capital (12,500 x P500) 6,250,000 Share Premium - ordinary 1,750,000
Cash (6,500 x P550) 3,575,000
Ordinary Share Capital (6,500 x P500) 3,250,000 Share Premium - ordinary 325,000
Cash (20,000 x P550 x 25%) 2,750,000
Subscription Receivable (11M x 75%) 8,250,000 Subscribed Ordinary Share Capital (20,000 x P500) 10,000,000 Share Premium - ordinary 1,000,000
Cash (12,000 x P550 x 75%) 4,950,000
Subscription Receivable 4,950,000
Subscribed Ordinary Share Capital (12,000 x P500) 6,000,000
Ordinary Share Capital 6,000,000
2-2 a) Cash (10,000 x P200) P2,000,000 Ordinary Share Capital (10,000 x P150) P1,500,000 Share Premium – ordinary 500,000
Share Premium – ordinary 60,000
Cash 60,000
b) Land (3,500 x P560) 1,960,000
Ordinary Share Capital (3,500 x 200) 700,000 Share Premium 1,260,000 c) Cash 18,000,000 Ordinary Share Capital (100,000 x P100) 10,000,000 Share Premium – ordinary 3,500,000 Preference Share Capital (5,000 x P500) 2,500,000 Share Premium – preference 2,000,000
Allocation: Class Total Fair Values Allocated Ordinary (100,000 x 120) 12,000,000 13,500,000 (18M x 12/16) Preference (5,000 x 800) 4,000,000 4,500,000 (18M x 4/16) 16,000,000 18,000,000
d) Cash (5,000 x P120 x 25%) 150,000
Subscription Receivable 450,000 Subscribed Ordinary Share Capital (5,000 x P100) 500,000 Share Premium – ordinary 100,000
e) Land 5,000,000 Cash 40,000 Donated Capital 4,960,000
2-3
Ordinary Share Capital P 380,000
Preference Share Capital 1,500,000 Subscribed Ordinary Share Capital (10,000 x P16) 160,000 Treasure Shares (1,000 x P18) ( 18,000) Retained Earnings 350,000 Total Shareholders’ Equity P 2,372,000
Share Premium – treasury shares 4,000 Retained Earnings 1,000 Treasury Shares 70,000 (4) Ordinary Share Capital (1,000 x P10) 10,000 Share Premium – ordinary (1,000/100,000 x P300,000) 3,000 Retained Earnings 1,000 Treasury Shares (1,000 x P14) 14,000
b) Total Shareholders’ Equity, December 31, 2019
Ordinary Share Capital, P10 par P 1,000,000 Share Premium 300,000 Retained Earnings 900,000 P 2,200,000
Treasury Share transactions took place in 2020:
Treasury Shares (140,000) Sale of Treasury Shares (4,000 x P15) 60,000 Sale of Treasury Shares (5,000 x P13) 65,000 Profit for the year 280,000 Cash Dividends Declared (200,000) Total Shareholders’ Equity, December 31, 2020 P 2,265,000
2-5
(a) Preference Share Capital (4,000 x P20) P80,000
Share Premium – preference (4,000/100,000 x P160,000) 6,400 Paid in Capital from Retirement of Preference Shares P2,400 Cash (4,000 x P21) 84,000
(b) Preference Share Capital (4,000 x P20) 80,000
Share Premium – preference (4,000/100,000 x P160,000) 6,400 Retained Earnings 17,600 Cash (4,000 x P26) 104,000
