Sunny Corporation is formed by the incorporation of MP Partnership On June 30, 19X2, the date...

   

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Sunny Corporation is formed by the incorporation of MP Partnership On June 30, 19X2, the date of corporate formation, the trial balance of MP Partnership shows: Cash Accounts Receivable Allowance for bad debts Merchandise Inventory Furniture and Equipment Accumulated Depreciation Accounts Payable Mel. Capital Pearl Capital 1. Debit P 30,000 90,000 2 80,000 50,000 P 250.000 Credit P 7,000 10,000 33.000 95.000 105.000 To reflect the fair market value of certain assots, the partners agreed to the following adjustmentų: P 250.000 Allowance for doubtful accounts is to be increased to 10% of accounta receivable. Inventory le to adjusted to the current market value of P 90,000. The profit and loss sharing rado between the two partners la 32 for Mel and Pearl, respectively. The partners is to receive common shares of the corporation equivalent to the value of the net assets transfered, and in return the same are to be distributed to Mel and Pearl In payment of their shares in the partnership. INSTRUCTIONS: Give the journal entries to record the above transactions in the books of the partnership and the corporation. 2. 19X2 May 1- 10 - 13. 15 - . 5 Lopez and Villanueva paid the subscriptions in full, and stock D certificates were issued to them. 16- 20. 21- REQUIRED: The Scheezo Corporation was authorized to issue 2,000 shares of common stock with a par value of P100 per share. Received the following subscriptions from live incorporators: Garcia 100 shares The three other Incorporators paid one half of their subscriptions. Tuazon and Sanchez paid their balances in full, and stock certificates were issued to them. After all lawlul calls and notices, Garcia defaulted. His stocks were declared delinquent and wore offered for sale in a public auction. Advertising expenses paid by the corporation amounted to P 700. At the public auction, Santos was the highest bidder for 70 sharos. He paid the balance of the subscription plus advertising costs. The stock certificates were issued. a) Entries in the books of the corporation to record the above transactions. b) Assuming that nobody bidded and the corporation made a bid on the unpaid subscriptions, give the necessary entries in the books of the corporation to record the transactions from May 15 to 21. 3. Prepare the journal entrios required for the following transactions: May 1: July 1 March 1 Rowland Corporation received 5,000 shares of donated common stock from its stockholders. (Note: The company had issued 15.000 shares at par value of P20) Soki 3,000 shares of donated stock at P 25 por sharo. Sold the remaining donated shares at P 18. 4. 5. 6. From the information in Test #3, prepare the stockholders' equity section of the balance sheet as of (a) March 31, (b) May 31, and (c) July 31 Suppose that in Tests #3 and 4 the 5,000 shares of treasury stock had been purchased for P 110,000 instead of being donated. a) b) What entries would be required to record the transactions? Prepare the stockholders' equity section as of March 31, May 31, and July 31. Presented below is the stockholders' equity of the balance sheet as of April 30. Paid-in Capital Preferred Stock, 12%, P100 par (20.000 shares authorized, 15,000 shares issued) Premium on Preferred Stock Common Stock. P 50 par (100.000 shares authorized, 60.000 shares issued) 3.000.000 Premium on Common Stock 100.000 Dec.20 Dec.29 Total Paid-in Capital Retained Earnings Total Stockholders' Equity July 15 Sept. 10 Oct. 25 Dec. 10 P 1,500,000 40,000 P 1,540,000 3.100.000 4.640.000 500.000 May 10 Received subscriptions to 5,000 shares of preferred stock at P 102, Collecting half of the subscription price. INSTRUCTIONS: P 5.140.000 ========= Purchased 10,000 shares of treasury common for P600,000. Received 25% of the subscription price of the preferred stock. : Sold 6,000 shares of treasury common for P 420,000 : Received the balance due on preferred stock subscribed and issued the Shares. Sold 3.000 shares of treasury common for P 150.000. : Retired the remaining 1,000 shares of treasury common. Prepare all entries necessary to record the above information. Sunny Corporation is formed by the incorporation of MP Partnership On June 30, 19X2, the date of corporate formation, the trial balance of MP Partnership shows: Cash Accounts Receivable Allowance for bad debts Merchandise Inventory Furniture and Equipment Accumulated Depreciation Accounts Payable Mel. Capital Pearl Capital 1. Debit P 30,000 90,000 2 80,000 50,000 P 250.000 Credit P 7,000 10,000 33.000 95.000 105.000 To reflect the fair market value of certain assots, the partners agreed to the following adjustmentų: P 250.000 Allowance for doubtful accounts is to be increased to 10% of accounta receivable. Inventory le to adjusted to the current market value of P 90,000. The profit and loss sharing rado between the two partners la 32 for Mel and Pearl, respectively. The partners is to receive common shares of the corporation equivalent to the value of the net assets transfered, and in return the same are to be distributed to Mel and Pearl In payment of their shares in the partnership. INSTRUCTIONS: Give the journal entries to record the above transactions in the books of the partnership and the corporation. 2. 19X2 May 1- 10 - 13. 15 - . 5 Lopez and Villanueva paid the subscriptions in full, and stock D certificates were issued to them. 16- 20. 21- REQUIRED: The Scheezo Corporation was authorized to issue 2,000 shares of common stock with a par value of P100 per share. Received the following subscriptions from live incorporators: Garcia 100 shares The three other Incorporators paid one half of their subscriptions. Tuazon and Sanchez paid their balances in full, and stock certificates were issued to them. After all lawlul calls and notices, Garcia defaulted. His stocks were declared delinquent and wore offered for sale in a public auction. Advertising expenses paid by the corporation amounted to P 700. At the public auction, Santos was the highest bidder for 70 sharos. He paid the balance of the subscription plus advertising costs. The stock certificates were issued. a) Entries in the books of the corporation to record the above transactions. b) Assuming that nobody bidded and the corporation made a bid on the unpaid subscriptions, give the necessary entries in the books of the corporation to record the transactions from May 15 to 21. 3. Prepare the journal entrios required for the following transactions: May 1: July 1 March 1 Rowland Corporation received 5,000 shares of donated common stock from its stockholders. (Note: The company had issued 15.000 shares at par value of P20) Soki 3,000 shares of donated stock at P 25 por sharo. Sold the remaining donated shares at P 18. 4. 5. 6. From the information in Test #3, prepare the stockholders' equity section of the balance sheet as of (a) March 31, (b) May 31, and (c) July 31 Suppose that in Tests #3 and 4 the 5,000 shares of treasury stock had been purchased for P 110,000 instead of being donated. a) b) What entries would be required to record the transactions? Prepare the stockholders' equity section as of March 31, May 31, and July 31. Presented below is the stockholders' equity of the balance sheet as of April 30. Paid-in Capital Preferred Stock, 12%, P100 par (20.000 shares authorized, 15,000 shares issued) Premium on Preferred Stock Common Stock. P 50 par (100.000 shares authorized, 60.000 shares issued) 3.000.000 Premium on Common Stock 100.000 Dec.20 Dec.29 Total Paid-in Capital Retained Earnings Total Stockholders' Equity July 15 Sept. 10 Oct. 25 Dec. 10 P 1,500,000 40,000 P 1,540,000 3.100.000 4.640.000 500.000 May 10 Received subscriptions to 5,000 shares of preferred stock at P 102, Collecting half of the subscription price. INSTRUCTIONS: P 5.140.000 ========= Purchased 10,000 shares of treasury common for P600,000. Received 25% of the subscription price of the preferred stock. : Sold 6,000 shares of treasury common for P 420,000 : Received the balance due on preferred stock subscribed and issued the Shares. Sold 3.000 shares of treasury common for P 150.000. : Retired the remaining 1,000 shares of treasury common. Prepare all entries necessary to record the above information.

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Accounting Journal Entries for Sunny Corporation and Scheeza Corporation 1 Sunny Corporation Formation Partnership Books Date Account Debit Credit June 30 Allowance for Doubtful Accounts 5000 Inventor... View the full answer