On January 5, 2019, Phelps Corporation received a charter granting the right to issue 5,000 shares of
Question:
Jan. 11 Issued 20,000 ordinary shares at $16 per share.
Feb. 1 Issued to Sanchez Corp. 4,000 preference shares for the following assets: machinery with a fair value of $50,000; a factory building with a fair value of $160,000; and land with an appraised value of $270,000.
July 29 Purchased 1,800 ordinary shares at $17 per share. (Use cost method.)
Aug. 10 Sold the 1,800 treasury shares at $14 per share.
Dec. 31 Declared a $0.25 per share cash dividend on the ordinary shares and declared the preference dividend.
Dec. 31 Closed the Income Summary account. There was $175,700 net income.
Instructions
a. Record the journal entries for the transactions listed above.
b. Prepare the equity section of Phelps Corporation's statement of financial position as of December 31, 2019.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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