Tictac Co. was organized on June 1, 2021 with authorized share capital as follows: 60,000 shares...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Tictac Co. was organized on June 1, 2021 with authorized share capital as follows: 60,000 shares of 9% Preference Share Capital, P100 par 220,000 shares of Ordinary Share Capital, P20 par During the fiscal year, the following transactions were completed in the order given: a. 30,000 preference shares were subscribed for P102 and 80,000 ordinary shares were subscribed for P23. Both subscriptions were payable 30% upon subscription, the balance in one payment. b. The second subscription payment was made, except one subscriber for 5,000 ordinary shares defaulted on payment. All the fully paid shares were issued. 12,000 ordinary shares were reacquired by Tictac Co. @ P25 per share. c. d. 15,000 preference shares were reacquired by Tictac Co. @ 180 per share. e. 3,000 preference shares in the treasury were exchanged for a machine with a fair market value of P630,000 f. Reissued 4,000 ordinary shares in the treasury @ P22 per share. g. A major shareholder donated 100,000 ordinary shares to Tictac Co. when the current market price is P24 per share. h. All the donated ordinary shares were sold at P30 per share. i. Received the donated equipment from Zalini Enterprises. Its fair market value was P70,000. j. Net Income for the fiscal year amounted to P1,480,000. Instructions: 1. Prepare the journal entries to record the transactions given above. 2. Prepare the Shareholders' Equity section as of May 31, 2022. Tictac Co. was organized on June 1, 2021 with authorized share capital as follows: 60,000 shares of 9% Preference Share Capital, P100 par 220,000 shares of Ordinary Share Capital, P20 par During the fiscal year, the following transactions were completed in the order given: a. 30,000 preference shares were subscribed for P102 and 80,000 ordinary shares were subscribed for P23. Both subscriptions were payable 30% upon subscription, the balance in one payment. b. The second subscription payment was made, except one subscriber for 5,000 ordinary shares defaulted on payment. All the fully paid shares were issued. 12,000 ordinary shares were reacquired by Tictac Co. @ P25 per share. c. d. 15,000 preference shares were reacquired by Tictac Co. @ 180 per share. e. 3,000 preference shares in the treasury were exchanged for a machine with a fair market value of P630,000 f. Reissued 4,000 ordinary shares in the treasury @ P22 per share. g. A major shareholder donated 100,000 ordinary shares to Tictac Co. when the current market price is P24 per share. h. All the donated ordinary shares were sold at P30 per share. i. Received the donated equipment from Zalini Enterprises. Its fair market value was P70,000. j. Net Income for the fiscal year amounted to P1,480,000. Instructions: 1. Prepare the journal entries to record the transactions given above. 2. Prepare the Shareholders' Equity section as of May 31, 2022.
Expert Answer:
Answer rating: 100% (QA)
Journal Entries a Cash 102000 Pref Shares subscriptions receivable 102000 b Cash 180000 Ord Shares subscriptions receivable 157000 Pref Shares subscriptions receivable 23000 c Treasury Shares 12000 Ca... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
Students also viewed these accounting questions
-
During the fiscal year ended June 30, 2014, Jones Co. had a 3-for-1 stock split. In its annual report for 2014, the company reported earnings per share for the year ended June 30, 2013, on a restated...
-
During the fiscal year ended June 30, 20X3, West City Council authorized construction of a new city hall building and the sale of serial bonds to finance the construction. The following transactions...
-
During the fiscal year ended June 30, 2013, Harmon School District (see exercise E4- 2) paid salaries of $ 2,160,000, chargeable to the instruction appropriation. Instruction salaries for the last...
-
What tensions may arise if a shareholder-centric model is imposed on a stakeholder-focused society?
-
1. Visit www.hautelook.com to learn more about this online retailer. In what ways does it provide value for manufacturers and consumers? 2. Do sites like these create conflicts between manufacturers...
-
What is the output from the following? >>> a = 3 >>> b = 4 >>> x = a * b >>> print x
-
Calculate the mean for each of the following sets of data: a. 2, 2, 3, 5 b. 3, 5, 5, 7, 7, 8, 8, 11 c. 9, 6, 7, 5, 8, 7, 8, 9, 10, 8, 7 d. 11, 13, 14, 15, 16, 16, 16, 17, 18, 20, 22, 25 e. 2.57,...
-
Moonstruck Company manufactures a reservation system with an estimated economic life of 12 years and leases it to National Airlines for a period of 10 years. The normal selling price of the equipment...
-
1. Chewing gum companies raise the price from $.30 to $.80 per pack. What will happen to the demand for chewing gum? a. A D or A QD? b. Economic Reason (from list above): c. Graph the change. Label...
-
Marias Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. Here is her forecasted income statement for April, when she expects to produce and sell...
-
Create the ~/ops445/lab4/lab4d.py script. The purpose of this script is to demonstrate creating and manipulating strings. There will be four functions each will return a single string. Use the...
-
Rather than traditional, culturally conditioned modes of leadership, todays successful global leaders need to have a global mindset. How does a global mindset compare to a traditional mindset?
-
How does understanding culture relate to a contingency management style? Can you cite some examples?
-
What should an international manager appreciate in another culture in order to be empathetic and understand it?
-
Explain the concepts Meaning of Work (MOW) and work centrality. How are they manifested in culture?
-
What can managers do to become aware of their own cultural baggage and how it affects the cross-cultural communication process?
-
Described below are certain transactions of Larson Company for 2015: 1. On May 10, the company purchased goods from Fry Company for $50,000, terms 2/10, n/30. Purchases and accounts payable are...
-
Find a polar equation for the curve represented by the given Cartesian equation. 4y 2 = x
-
The Piano Studio Ltd. has provided you with the following information with respect to its piano inventory for the month of August. The company uses the specific identification cost formula....
-
Selected information for Metro Inc. for the most recent three years is as follows (dollar amounts are in millions): Instructions (a) What event most likely caused the high amount of profitability in...
-
Mila Ltd.'s ending inventory at December 31, 2018, was understated by $43,000. Assuming that this error is not detected, what effect will it have on (a) 2018 income before income tax, (b) 2018...
-
Assume the same facts as in Problem 42. Further assume that next year, Gary sells the SUV for $20,000. a. How much depreciation expense can Gary deduct as a business deduction with respect to the SUV...
-
Describe how liabilities are reported and analyzed.
-
Assume the same facts as in Problem 29, except that Sally has AGI of \($75,000.\) What is her qualified student loan interest deduction in 2019? Problem 29, In 2019, Sally Morris, a single taxpayer,...
Study smarter with the SolutionInn App