El Gee Dee Corporation reports the following at the start of the year Participating Preferred Stocks....

 

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El Gee Dee Corporation reports the following at the start of the year Participating Preferred Stocks. 7% 20 par value. Non-cumulative. 1,000 shares issued and outstanding Common Stocks. 12 par value. 2,000 shares authorized. 1,000 shares issued, 500 shares outstanding. Additional Paid in Capital: Common Stock Additional Paid in Capital: Preferred Stock Additional Paid in Capital: Treasury Stock Retained Earnings Treasury Stock (Purchased at P80) P150,000 140,000 110,000 400,000 40,000 Journal Entries: a) Professional Expenses worth P18,000 and Legal Expenses 27,000 were paid with 300 and 480 shares of Common Stock respectively. b) El Gee Dee sells 150 shares of Common Stock in its treasury at P40 per share and retires the rest c) Declared Stock split of 2 is to 1 for Common Stock d) The board of directors declared Cash dividends of P65,000 e) El Gee Dee issued 100 shares of Common Stock at P30 per share f) Payment was made for the dividends declared g) Net Income for the year amounted to P180,000, this amount already takes into consideration the Expenses at letter a. Required. 1. Give each Journal Entry (use letters a-g in place of dates) 8 Points 2. Construct Shareholder's Equity Portion of the Balance Sheet in good form 12 Points El Gee Dee Corporation reports the following at the start of the year Participating Preferred Stocks. 7% 20 par value. Non-cumulative. 1,000 shares issued and outstanding Common Stocks. 12 par value. 2,000 shares authorized. 1,000 shares issued, 500 shares outstanding. Additional Paid in Capital: Common Stock Additional Paid in Capital: Preferred Stock Additional Paid in Capital: Treasury Stock Retained Earnings Treasury Stock (Purchased at P80) P150,000 140,000 110,000 400,000 40,000 Journal Entries: a) Professional Expenses worth P18,000 and Legal Expenses 27,000 were paid with 300 and 480 shares of Common Stock respectively. b) El Gee Dee sells 150 shares of Common Stock in its treasury at P40 per share and retires the rest c) Declared Stock split of 2 is to 1 for Common Stock d) The board of directors declared Cash dividends of P65,000 e) El Gee Dee issued 100 shares of Common Stock at P30 per share f) Payment was made for the dividends declared g) Net Income for the year amounted to P180,000, this amount already takes into consideration the Expenses at letter a. Required. 1. Give each Journal Entry (use letters a-g in place of dates) 8 Points 2. Construct Shareholder's Equity Portion of the Balance Sheet in good form 12 Points

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Ref Account Title Debit Credit Explanation a Professional expenses 18000 Common stock 3600 30012 Additional Paid in CapitalCommon stock 14400 18000360... View the full answer