please do not give solution in image formatv 2. Your cooperative was authorized to issue 5 million common shares with a parvalue of Php. 10.00 and 2 million preferred shares with a par value of Php. 10.00 with astated dividend of 6%. There were 50% subscription on the common share and 60% onthe preferred share. 40% of the subscribed common shares and 80% of the preferredshares were paid. Further, a cooperative bought 50,000 common shares and 20,000preferred shares for cash.Required: Journalize the transactions using both memorandum entry method (MEM)and the journal entry method (JEM).

The memorandum Entry Method (MEM) is the format of providing general information related to business…

Answered: 2. Your cooperative was authorized to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2. LAVENDER Corporation issued 20,000 shares of its ₱70 par value ordinary share capital and 8,000 of its ₱80 par value preference share capital for a total amount of ₱1,800,000. At this date, the company's ordinary shares are selling at ₱80 per share and the preference shares are at ₱100 per share. What amount of the proceeds should be allocated to the preference shares? a. ₱ 600,000 b. ₱ 800,000 c. ₱ 640,000 d. ₱ 400,000
Item No. 2 is based on the following information: Virma Corporation sold to a subscriber 500 shares of its P 30 par value ordinary shares at P 32 per share receiving a 30% down payment. 2. In recording this transaction: a. Ordinary Share Capital will be credited in the amount of P 15,000. Ordinary Share Capital will be credited in the amount of P 16,000. b. c. Ordinary Share Premium will be credited in the amount of P 4,500. d. Subscribed Ordinary Share Capital will be credited in the amount of P 15,000.
MUSCAT SAOG has registered its capital as 5,000,000 divided into 5,000,000 shares of OMR 1 each. The company offered 3,000,000 shares of OMR 1 each to the public for subscription. The company received 90% of issued shares from the applicants. The company called up OMR 0.700 baisa. The company received the entire amount. ANSWER QUESTION NO. 1 TO 5
EF Ltd. invited applications for issuing 80,000 equity shares of Rs. 50 each at a premium of 20%. The amount was payable as follows : On Application : Rs. 20 per share (including premium Rs. 5) On Allotment: Rs. 15 per share (including premium Rs. 5) On First Call : Rs. 15 per share On Second and Final call : Balance amount Applications for 1,20,000 shares were received. Applications for 20,000 shares were rejected and pro-rata allotment was made to the remaining applicants. Seema, holding 4,000 shares failed to pay the allotment money. Afterwards the first call was made. Seema paid allotment money along with the first call. Sahaj who had applied for 2,500 shares failed to pay the first call money. Sahaj’s shares were forfeited and subsequently reissued to Geeta for Rs. 60 per share, Rs. 50 per share paid up. Final call was not made. Pass necessary journal entries for the above transactions in the books of EF Ltd. by opening calls-in-arrears account.
Provide solutions in good accounting form. Thank you! LAVENDER Corporation issued 20,000 shares of its ₱70 par value ordinary share capital and 8,000 of its ₱80 par value preference share capital for a total amount of ₱1,800,000. At this date, the company's ordinary shares are selling at ₱80 per share and the preference shares are at ₱100 per share. What amount of the proceeds should be allocated to the preference shares? a.₱ 800,000 b.₱ 640,000 c. ₱ 600,000 d.₱ 400,000
FPJ Inc. received subscription for 5,250 Preference Shares at P 10 above par value of P 200 per share. After a down payment of P 125 per share from all the subscribers, how much is the balance of the Subscription
LAVENDER Corporation issued 20,000 shares of its ₱70 par value ordinary share capital and 8,000 of its ₱80 par value preference share capital for a total amount of ₱1,800,000. At this date, the company's ordinary shares are selling at ₱80 per share and the preference shares are at ₱100 per share. What amount of the proceeds should be allocated to the preference shares? Choose an answer, either a or b. Show solution in good accounting form. a.) ₱ 800,000 b. ) 0
A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of XYZ Co. ordinary shares at P80.50 plus broker’s fee of P500. Received stock rights permitting the purchase of one share at P70 for every five shares owned on September 1. On this date, the rights had a market price of P3 each, and the market price of the stock ex-right was P72 per share. On Nov. 10, exercised all rights from the stock purchased March 20 which shall be accounted for separately. XYZ declared cash dividends of P100 per share by XYZ’s BOD to all shareholders however, your client has received ordinary shares of 300 when its fair value is P90. The carrying value of the investment at year-end will be (Rights are accounted for separately.)
BFAR Corp. has ordinary share capital with par value of P50, and preference share capital with par value of P100 per share. Below are the related transactions for the year: Issued 2,000 ordinary shares for P70 per share Issued 3,000 preference shares for P130 per share • Received subscriptions for 900 ordinary shares at P80 per share • Received subscriptions for 300 preference shares at P200 per share, of which P40,000 is subscriptions receivable ● The Share Premium account has no balance at the start of the year. How much is the balance of the Share Premium account at the end of the year?
Star Ltd. issued 1,00,000 shares of Rs. 10 each at a premium of Rs. 2 per share, payable as follows : On application Rs. 2.50 per share On allotment Rs. 4.50 (Including premium) On First Call Rs. 2.50 On Final Call Rs. 2.50
ABC Ltd., has part of its share capital as 10,000 Redeemable Preference Shares of Rs. 100 each. When the shares became due for redemption, the company decided that the whole amount will be redeemed out of a fresh issue of equal amount of equity shares of Rs. 10 each. Show the journal entries in the books of the company.
A Company issued 20,000 shares of its ₱70 par value ordinary share capital and 8,000 of its ₱80 par value preference share capital for a total amount of ₱1,800,000. At this date, the company's ordinary shares are selling at ₱80 per share and the preference shares are at ₱100 per share. What amount of the proceeds should be allocated to the preference shares? a. ₱ 600,000 b. ₱ 800,000 c. ₱ 400,000 d. ₱ 640,000

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