3. Prepare the journal entries required for the following transactions: March 1 : Rowland Corporation received...

 

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3. Prepare the journal entries required for the following transactions: 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) May 1: July 1 : Sold 3,000 shares of donated stock at P 25 per share. Sold the remaining donated shares at P 18. 6 4. 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 5. 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) What entries would be required to record the transactions? b) Prepare the stockholders' equity section as of March 31, May 31, and July 31. 6. 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) P 1,500,000 Premium on Preferred Stock 40,000 P 1,540,000 Common Stock, P 50 par (100,000 shares authorized, 60,000 shares issued) 3,000,000 Premium on Common Stock 100,000 Total Paid-in Capital Retained Earnings Total Stockholders' Equity During the next eight months, selected transactions are: 7 May 10 Received subscriptions to 5,000 shares of preferred stock at P 102, Collecting half of the subscription price. July 15 : Purchased 10,000 shares of treasury common for P600,000. Sept. 10 Received 25% of the subscription price of the preferred stock. Oct. 25: Sold 6,000 shares of treasury common for P 420,000 Dec. 10 Dec.20 Dec.29 INSTRUCTIONS: 3,100,000 4,640,000 500,000 P 5,140,000 ========= : 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. 3. Prepare the journal entries required for the following transactions: 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) May 1: July 1 : Sold 3,000 shares of donated stock at P 25 per share. Sold the remaining donated shares at P 18. 6 4. 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 5. 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) What entries would be required to record the transactions? b) Prepare the stockholders' equity section as of March 31, May 31, and July 31. 6. 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) P 1,500,000 Premium on Preferred Stock 40,000 P 1,540,000 Common Stock, P 50 par (100,000 shares authorized, 60,000 shares issued) 3,000,000 Premium on Common Stock 100,000 Total Paid-in Capital Retained Earnings Total Stockholders' Equity During the next eight months, selected transactions are: 7 May 10 Received subscriptions to 5,000 shares of preferred stock at P 102, Collecting half of the subscription price. July 15 : Purchased 10,000 shares of treasury common for P600,000. Sept. 10 Received 25% of the subscription price of the preferred stock. Oct. 25: Sold 6,000 shares of treasury common for P 420,000 Dec. 10 Dec.20 Dec.29 INSTRUCTIONS: 3,100,000 4,640,000 500,000 P 5,140,000 ========= : 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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