The Good News Corporation was formed on April 1, 2014. There were two transactions involving issuance...

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The Good News Corporation was formed on April 1, 2014. There were two transactions involving issuance of preference shares: (1) 2,000 shares were issued in exchange for land, and (2) 500 shares were issued for cash of P70 per share. There were also two transactions involving issuance of ordinary shares: (1) 12,000 shares were issued for cash, and (2) 800 shares were issued as payment for pre-operating expenses. Selected general ledger accounts for the Good News Corporation show the following activities for the first month of operations: Preference Share Capital, P50 par 100,000 25,000 Cash 78,000 35,000 Pre-Operating Expenses 5,400 Preference Share Premium 50,000 10,000 Ordinary Share Capital, P5 par 60,000 4,000 Land 150,000 Ordinary Share Premium 18,000 1,400 Instructions: Reconstruct the journal entries made for share capital transactions during the month of April. 1. 2. Determine the total number of preference and ordinary shares outstanding. The Good News Corporation was formed on April 1, 2014. There were two transactions involving issuance of preference shares: (1) 2,000 shares were issued in exchange for land, and (2) 500 shares were issued for cash of P70 per share. There were also two transactions involving issuance of ordinary shares: (1) 12,000 shares were issued for cash, and (2) 800 shares were issued as payment for pre-operating expenses. Selected general ledger accounts for the Good News Corporation show the following activities for the first month of operations: Preference Share Capital, P50 par 100,000 25,000 Cash 78,000 35,000 Pre-Operating Expenses 5,400 Preference Share Premium 50,000 10,000 Ordinary Share Capital, P5 par 60,000 4,000 Land 150,000 Ordinary Share Premium 18,000 1,400 Instructions: Reconstruct the journal entries made for share capital transactions during the month of April. 1. 2. Determine the total number of preference and ordinary shares outstanding.

Answer rating: 100% (QA)

SNo Accounts Debit Credit 1 Land 150000 Preference sh... View the full answer