On October 1, 2018, Branded Corporation exchanged 20,000 shares of its P 200 par value of Ordinary Shares for land. A few months ago, the land was appraised by Mr. Roy, an independent appraiser, at P 5,000,000. Branded shares are currently traded at the stock exchange at P 300. How much should be debited to land account? _______________________ Suave Inc. was organized on January 1, 2018 with authorized ordinary share capital of P 2.000,000, P 50 par value. Subsequently, incorporators subscribed for 25,000 ordinary shares at P 54. How much must be paid up upon subscription to comply with the requirement of the SEC?

On October 1, 2018, Branded Corporation exchanged 20,000 shares of its P 200 par value of Ordinary Shares for land. A few months ago, the land was appraised by Mr. Roy, an independent appraiser, at P 5,000,000. Branded shares are currently traded at the stock exchange at P 300. How much should be debited to land account? _______________________ Suave Inc. was organized on January 1, 2018 with authorized ordinary share capital of P 2.000,000, P 50 par value. Subsequently, incorporators subscribed for 25,000 ordinary shares at P 54. How much must be paid up upon subscription to comply with the requirement of the SEC?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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On October 1, 2018, Branded Corporation exchanged 20,000 shares of its P 200 par value of Ordinary Shares for land. A few months ago, the land was appraised by Mr. Roy, an independent appraiser, at P 5,000,000. Branded shares are currently traded at the stock exchange at P 300. How much should be debited to land account?
C. Prepare the journal entries for this transactions Peterson Company issued 4,000 shares of preferred stock for $240,000.The stock has a par value of $60 per share. On December 2, 2014, Ewell Company purchases a piece of land from the original owner. In payment for the land, Ewell Company issues 8,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of $400,000. Chaney Corporation issued 20,000 shares of common stock on January 1, 2014. The stock has par value of $1.00 per share and was sold at $30 per share. Bradley Corporation issued 10,000 shares of common stock on January 1, 2013. The stock has par value of $0.01 per share and was sold at $25 per share.
Relay Company traded 20,000 shares of its P200 par value ordinary shares for land on July 1, 2021. An independent appraiser valued the land at P5,000,000 a few months ago. Relay's shares are now trading at P300 on the stock exchange. How much should be debited for the land account? O P5,000,000 O P6,000,000 P7,000,000 O P4,000,000
Kristopher Company began operations in 2014. At 12/31/22, Kristopher had a debit balance of $25,000 in its Allowance for Adjustment to Market. At January 1, 2022, Kristopher owned the following securities, accounted for using the fair value method. Cost MJO Common (25,000 shares) $550,000 JKH Preferred (1,900 shares) 199,500 EKH Common (7,500 shares) 82,500 During 2022 the following events occurred: 4/3/22 Sold 3,000 shares of MJO for $75,000. 9/6/22 Acquired 1,500 shares of WVO Common for $25 per share. At 12/31/22, the fair values for Kristopher’s securities were: MJO Common, $24 per share JKH Preferred, $103 per share EKH Common, $13 per share WVO Common, $27 per share Required: Prepare any journal entries required in 2022 to record the securities activity, including any required adjusting entries at 12/31/22. Show any calculations.…
ABC Financial Services Inc. invested $15,000 to acquire 3,750 shares of EDFInvestments Inc. on March 15, 2012. This investment represents less thun 20% of the investee's voting stock. On May 7, 2016, ABC Financial Services Inc. sells 1,950 shares for $11,050. Which of the following will be the correct journal entry for this transaction?Introduction to Fir29:01 Finlnswer SheetA. Cash$ 11,050 Loss on Disposal$ 3,950Investments$ 15,000B. Cash$ 11,050Investment$ 7,800Gain on Disposal$ 3,250C. Cash$ 11,050Investments$ 11,050D. Gain on Disposal$ 11,050Investments$ 11,050
Agustin Company has the following transactions relating to its investments during 2022. January 5 - Acquired 10,000 shares of Abalos Company for P1,000,000 paying additional P20,000 for brokerage fee and another P5,000 for commission. Received dividends from Abalos declared January 2, 2022 to stockholders of record January 10, 2022, P20,000. How much should the investment account be debited if the shares are held for trading?
On December 1, 2018, Ban Company exchanged 40,000 shares of its P10 par value ordinary shares held in treasury for a used machine. The treasury shares were acquired by Ban at a cost of P40 per share and are accounted for under the cost method. On the date of exchange, the ordinary shares had a fair value of P55 per share, but the shares were originally issued at P30 per share. What is the increase in equity as a result of the exchange? Group of answer choices A. 1,800,000 B. 1,600,000 C. 2,200,000 D. 600,000
The following account balances are for the Agee Company as of January 1, 2020, and December 31, 2020. All amounts are denominated in kroner (Kr). Accounts payable Accounts receivable Accumulated depreciation-buildings Accumulated depreciation-equipment Bonds payable-due 2023 Buildings Cash Common stock Depreciation expense Dividends (10/1/20) Equipment Gain on sale of building Rent expense Retained earnings Salary expense Sales Utilities expense Relevant exchange rates for 1 Kr were as follows: 2013 2014 January 1, 2020 April 1, 2020 July 1, 2020 $ 2.50 2.30 January 1, 2020 (23,000) 46,000 (37,000) 0 2.60 2.70 2.90 (56,000) 126,000 52,000 (61,000) 0 0 0 0 0 (47,000) 0 0 0 December 31, 2020 (29,000) 96,000 (42,000) (6,700) (56,000) 101,000 Additional Information Agee issued additional shares of common stock during the year on April 1, 2020. Common stock at January 1, 2020, was sold at the start of operations in 2013. Agee purchased buildings in 2014 and sold one building with a book…
Provide solutions in good accounting form. Thank you! On October 17, 2021, LILAC Corporation exchanged 20,000 shares of its ₱200 par value stock for land. A few months ago, the land was appraised by an independent appraiser at ₱5,000,000. The land had an initial cost of ₱4,500,000. LILAC is currently trading at the stock exchange at ₱300. How much should be credited to Share Premium upon the issuance of the shares? a. ₱ 500,000 b. ₱ 2,000,000 c. ₱ - 0 - d. ₱ 1,000,000
On March 31, 2018, Chow Brothers, Inc., bought 10% of KT Manufacturing’s capital stock for $50 million. KT’snet income for the year ended December 31, 2018, was $80 million. The fair value of the shares held by Chow was$35 million at December 31, 2018. KT did not declare or pay a dividend during 2018.Required:1. Prepare all appropriate journal entries related to the investment during 2018.2. Assume that Chow sold the stock on January 20, 2019 for $30 million. Prepare the journal entry Sanbornwould use to record the sale.
On June 30, 2024, Ericson, Inc. purchased land. In payment for the land, Erickson, Inc. issued 10,000 shares of common stock with a $10 par value. The land had been appraised at a market value of $117,000. The journal entry to record this transaction would be: O Land 100,000 Common Stock-$10 Par Value O Land Common Stock-$10 Par Value Paid-In Capital in Excess of Par-Common O Land Common Stock-$10 Par Value Paid-In Capital in Excess of Par-Common Land Common Stock-$10 Par Value 117,000 137,000 117,000 100,000 100,000 17,000 100.000 37,000 117,000
The following information is available about Ayayai Corp.'s investments at December 31, 2023. This is the first year Ayayai has purchased securities for investment purposes. Securities 2,500 shares of Petra Corporation common shares 900 shares of Dugald Inc. preferred shares Ayayai follows IFRS. (a) Cost Account Titles and Explanation $25,000 18,000 $43,000 Fair Value $30,000 16,000 $46,000 Prepare the adjusting entry for December 31, 2023, assuming the investments are acquired for trading purposes and accounted for using the FV-NI model with no separate reporting of dividends and other types of FV-NI investment income and losses. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Debit Credit