Moon Company had the following transactions: 2019 Aug. 1 Purchased 1,000 shares of Moon Company for...
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Moon Company had the following transactions: 2019 Aug. 1 Purchased 1,000 shares of Moon Company for P100,000 Oct. 1 Purchased 8,000 shares of Moon Company for P560,000 2020 July 1 Purchased 6,000 shares of Star Company for P480,000 Aug. 1 Sold 5,000 shares of Star Company for P500,000. 2021 Feb. 1 Received 50,000 share dividend. Nov. 1 Received share rights to purchase one new share at P60 for every 5 rights tendered. On this date, the right is quotes at P10. Dec. 1 Sold all share rights P15 per right. Required: Prepare journal entries to record the transactions using average and FIFO. Assume that the share rights are accounted for separately. Moon Company had the following transactions: 2019 Aug. 1 Purchased 1,000 shares of Moon Company for P100,000 Oct. 1 Purchased 8,000 shares of Moon Company for P560,000 2020 July 1 Purchased 6,000 shares of Star Company for P480,000 Aug. 1 Sold 5,000 shares of Star Company for P500,000. 2021 Feb. 1 Received 50,000 share dividend. Nov. 1 Received share rights to purchase one new share at P60 for every 5 rights tendered. On this date, the right is quotes at P10. Dec. 1 Sold all share rights P15 per right. Required: Prepare journal entries to record the transactions using average and FIFO. Assume that the share rights are accounted for separately.
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To record the transactions using average and FIFO FirstInFirstOut methods we need to determine the cost of shares sold based on the chosen method Lets ... View the full answer
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
Posted Date:
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