Problem #25 After formation on Aug. 1, 2018, the ledger accounts of the llano Corporation have the following balances: Accrued Expenses Accounts Payable Accounts Receivable Allowance for Uncollectible Accounts Building Cash Ordinary Shares, P250 par, 50,000 shares authorized Subscribed Ordinary Shares Furniture and Fixtures Merchandise Inventory Notes Payable-Short Term Organization Expense Share Premium-Ordinary Share Premium-Preference 10% Noncumulative and Nonparticipating Preference Shares, P500 par, 5,000 shares authorized 10% Preference Shares Subscribed, P500 par Subscriptions Receivable-Ordinary Subscriptions Receivable-Preference P 50,000 400,000 220,000 20,000 1,000,000 160,000 1,513,000 80,000 250,000 1,000,000 250,000 30,000 60,000 30,000 250,000 100,000 41,000 52,000 Required: 1. Determine the following: a. How many ordinary shares are outstanding? b. How many ordinary shares are subscribed? C. How many preference shares are outstanding? d. How many preference shares are subscribed? . At what average price has ordinary shares been subscribed or issued? f. Assume that no dividends are paid in the first year of the corporation's existence. What are the rights of the preference shareholders? 8. Assuming that all of the Share Premium-Ordinary was applicable to the ordinary shares that have been subscribed but not yet issued, what was the subscription price per share of the ordinary shares subscribed? h. Assuming that the board of directors declared no dividends in 2018, what amount would have to be paid the preference shareholders in 2019 before any dividend could be paid to the ordinary shareholders? a classified statement of financial position for the corporation immediately 2. Prepare after formation. Problem #21 Shareholders' Equity Transactions and Statement of Financial Position Presentation The shareholders' equity of M. Gangoso Corporation at Jan. 1, 2019, appears below: 8% Preference Shares, P250 par, 15,000 shares P1,450,000 authorized, 5,800 shares issued and outstanding Share Premium-Preference 870,000 Ordinary Shares, P100 par, 200,000 shares authorized, 40,000 shares issued and outstanding 4,000,000 Share Premium-Ordinary 2,400,000 Retained Earnings 2,700,000 During 2019, the following transactions occurred: Jan. 10 Issued 16,000 ordinary shares for P180 cash per share. 23 Purchased 6,000 ordinary shares for the treasury at P200 per share. Mar. 2 Shareholders donated 4,000 ordinary shares to the corporation. 14 Sold one-half of the treasury shares acquired last Jan. 23 for P210 per share. 14 Sold the donated shares at P210 per share. July 15 Issued 3,200 preference shares to acquire special equipment with a fair market value of P1,440,000. Sep. 15 Received subscriptions to 18,000 ordinary shares at P250 per share. Oct. 15 Received cash payment from each subscriber for 40% of the ordinary shares subscription price. Nov. 15 Received the balance due on the Sept. 15 shares subscriptions in cash and issued the stock certificates. Dec. 31 Closed profit of P522,000 from the Income Summary account to Retained Earnings. Required: 1. Set up T-accounts for the shareholders' equity accounts at the beginning of the year and enter January 1 balances. 2. Prepare journal entries to record the foregoing transactions and post to T-accounts. Determine the ending balances for the shareholders' equity accounts. 3. Prepare the Dec. 31, 2019 shareholders' equity section of the statement of financial position. Problem #25 After formation on Aug. 1, 2018, the ledger accounts of the llano Corporation have the following balances: Accrued Expenses Accounts Payable Accounts Receivable Allowance for Uncollectible Accounts Building Cash Ordinary Shares, P250 par, 50,000 shares authorized Subscribed Ordinary Shares Furniture and Fixtures Merchandise Inventory Notes Payable-Short Term Organization Expense Share Premium-Ordinary Share Premium-Preference 10% Noncumulative and Nonparticipating Preference Shares, P500 par, 5,000 shares authorized 10% Preference Shares Subscribed, P500 par Subscriptions Receivable-Ordinary Subscriptions Receivable-Preference P 50,000 400,000 220,000 20,000 1,000,000 160,000 1,513,000 80,000 250,000 1,000,000 250,000 30,000 60,000 30,000 250,000 100,000 41,000 52,000 Required: 1. Determine the following: a. How many ordinary shares are outstanding? b. How many ordinary shares are subscribed? C. How many preference shares are outstanding? d. How many preference shares are subscribed? . At what average price has ordinary shares been subscribed or issued? f. Assume that no dividends are paid in the first year of the corporation's existence. What are the rights of the preference shareholders? 8. Assuming that all of the Share Premium-Ordinary was applicable to the ordinary shares that have been subscribed but not yet issued, what was the subscription price per share of the ordinary shares subscribed? h. Assuming that the board of directors declared no dividends in 2018, what amount would have to be paid the preference shareholders in 2019 before any dividend could be paid to the ordinary shareholders? a classified statement of financial position for the corporation immediately 2. Prepare after formation. Problem #21 Shareholders' Equity Transactions and Statement of Financial Position Presentation The shareholders' equity of M. Gangoso Corporation at Jan. 1, 2019, appears below: 8% Preference Shares, P250 par, 15,000 shares P1,450,000 authorized, 5,800 shares issued and outstanding Share Premium-Preference 870,000 Ordinary Shares, P100 par, 200,000 shares authorized, 40,000 shares issued and outstanding 4,000,000 Share Premium-Ordinary 2,400,000 Retained Earnings 2,700,000 During 2019, the following transactions occurred: Jan. 10 Issued 16,000 ordinary shares for P180 cash per share. 23 Purchased 6,000 ordinary shares for the treasury at P200 per share. Mar. 2 Shareholders donated 4,000 ordinary shares to the corporation. 14 Sold one-half of the treasury shares acquired last Jan. 23 for P210 per share. 14 Sold the donated shares at P210 per share. July 15 Issued 3,200 preference shares to acquire special equipment with a fair market value of P1,440,000. Sep. 15 Received subscriptions to 18,000 ordinary shares at P250 per share. Oct. 15 Received cash payment from each subscriber for 40% of the ordinary shares subscription price. Nov. 15 Received the balance due on the Sept. 15 shares subscriptions in cash and issued the stock certificates. Dec. 31 Closed profit of P522,000 from the Income Summary account to Retained Earnings. Required: 1. Set up T-accounts for the shareholders' equity accounts at the beginning of the year and enter January 1 balances. 2. Prepare journal entries to record the foregoing transactions and post to T-accounts. Determine the ending balances for the shareholders' equity accounts. 3. Prepare the Dec. 31, 2019 shareholders' equity section of the statement of financial position