year and was authorized to issue share capital of 50,000 shares Lake Company was organized at...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
year and was authorized to issue share capital of 50,000 shares Lake Company was organized at the beginning of the current Asynchronous-Activity-1-Shareh x O File | C:/Users/User/Downloads/Asynchronous-Activity-1-Shareholders-Equity.pdf Page view A Read aloud T Add text V Draw 9 Highlight O Erase 1 of 5 PROBLEM NO. 2 PROBLEM NO. 1 with par value of P100. Ocean Company was organized at the beginning of The following transactions occurred during the year 100,000 shares of P50 par value. The following transactions occurred during the year i connection with the share capital: 1. Received subscriptions at par value from incorporators equal to 40% of the authorized share capital. 1. The incorporators subscribed for 25% of the authorized share capital at par value. 2. Received a 25% downpayment on the subscriptions from the incorporators. 2. The incorporators paid 25% on their subscription. 3. Received full payment on 10,000 shares originally subscribed. 3. Full payment was received on 15,000 shares originally subscribed. 4. A patent was acquired by issuing 5,000 shares. The patent has fair value. 4. Land with fair value of P600,000 was acquired upon issuance of 10,000 shares. The market value of the share at this time is P55. 5. Received cash subscriptions to 15,000 shares at P120 per share. Required: 5. Cash subscription to 5,000 shares at P60 per share was received. a. Prepare journal entries to record the transactions following the journal entry method. 6. Issued 2,000 shares to the legal counsel in payment for hie P100,000 bill for organization services. b. Present the shareholders' equity in the statement of financial position. Required: a. Prepare journal entries to record the transactions using the memorandum method. b. Present the shareholders' equity in the statement ot financial position. 6:15 pm P Type here to search 28°C Partly cloudy A E G 4) O ENG 29/01/2022 year and was authorized to issue share capital of 50,000 shares Lake Company was organized at the beginning of the current Asynchronous-Activity-1-Shareh x O File | C:/Users/User/Downloads/Asynchronous-Activity-1-Shareholders-Equity.pdf Page view A Read aloud T Add text V Draw 9 Highlight O Erase 1 of 5 PROBLEM NO. 2 PROBLEM NO. 1 with par value of P100. Ocean Company was organized at the beginning of The following transactions occurred during the year 100,000 shares of P50 par value. The following transactions occurred during the year i connection with the share capital: 1. Received subscriptions at par value from incorporators equal to 40% of the authorized share capital. 1. The incorporators subscribed for 25% of the authorized share capital at par value. 2. Received a 25% downpayment on the subscriptions from the incorporators. 2. The incorporators paid 25% on their subscription. 3. Received full payment on 10,000 shares originally subscribed. 3. Full payment was received on 15,000 shares originally subscribed. 4. A patent was acquired by issuing 5,000 shares. The patent has fair value. 4. Land with fair value of P600,000 was acquired upon issuance of 10,000 shares. The market value of the share at this time is P55. 5. Received cash subscriptions to 15,000 shares at P120 per share. Required: 5. Cash subscription to 5,000 shares at P60 per share was received. a. Prepare journal entries to record the transactions following the journal entry method. 6. Issued 2,000 shares to the legal counsel in payment for hie P100,000 bill for organization services. b. Present the shareholders' equity in the statement of financial position. Required: a. Prepare journal entries to record the transactions using the memorandum method. b. Present the shareholders' equity in the statement ot financial position. 6:15 pm P Type here to search 28°C Partly cloudy A E G 4) O ENG 29/01/2022
Expert Answer:
Answer rating: 100% (QA)
a Sr no 1 2 3 4 Ocean Company Particulars Subscription Receivable 1000005025 Subscribed Sh... View the full answer
Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
Posted Date:
Students also viewed these accounting questions
-
At the beginning of the current year, Callifax Corporation had dividends payable of $1,500,000. During the current year, the company declared cash dividends of $4,300,000, of which $900,000 appeared...
-
At the beginning of the current (non-leap) year, Charles owns all of Pearl Corporations outstanding stock. His basis in the stock is $80,000. On July 1, he sells all his stock to Donald for $125,000....
-
At the beginning of the current year, Waxler Corporation had dividends payable of $1,600,000. During the current year, the company declared cash dividends of $4,500,000, of which $970,000 appeared as...
-
Prepare journal entries to record the following grant-related transactions of an enterprise fund activity. Explain how these transactions should be reported in the enterprise funds financial...
-
Chappy's Chapstick, Inc. recently hired a new accountant, who made the following errors: 1. Recorded a $200 cash purchase of inventory as a debit to inventory and a credit to accounts payable. 2....
-
Your best friend has an idea for a long-distance car service to drive people across the country. Indicate the best explanation for why others have not taken advantage of her idea: true innovation,...
-
What are the differences between extend and include use cases?
-
At December 31, 2016, Durango Ltd. reported the following as plant assets. Land...................................................................................... 2,000,000...
-
The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $210,000. b. Raw materials used in production, $190,000...
-
An analysis of the transactions made by Mark Kotsay & Co., a certified public accounting firm, for the month of August is shown below. The expenses were $650 for rent, $4,800 for salaries and wages,...
-
Read the case study and then answer the questions that follow. Case Study Mr. and Mrs. Dahlstrand filed a complaint in state court against Clark Home Inspection Services; Holmes and Holmes, as owners...
-
(L03) Nate owns a repair shop and is selling some of his machinery for \(\( \$ \) 100,000\) for two equal payments of \(\( \$ \) 50,000\) each, plus adequate interest. His original basis was \(\( \$...
-
(L03) In Year 1, Noah sells a collector automobile he purchased several years ago with a basis of \(\( \$ \) 20,000\) to a buyer for \(\( \$ \) 100,000\). As part of the purchase price, the buyer...
-
(L03) In Year 1, Noah sells a collector automobile he purchased several years ago with a basis of \(\( \$ \) 65,000\) to a buyer for \(\( \$ \) 100,000\). As part of the purchase price, the buyer...
-
(L04) On December 10, Year 2, a calendar-year farmer purchased a 9-month supply of feed for \(\( \$ \) 9,000\) and purchased \(\( \$ \) 3,000\) of seed that she will use in the subsequent spring...
-
(LO3) Lily and Peter live in California and file as married filing separately. Lily earns wages of \(\( \$ \) 125,000\) working as a travel planner. Peter owns a surf shop and earns Schedule C income...
-
Raters who are low on conscientiousness and very agreeable tend to: Group of answer choices commit leniency error commit halo error be very accurate raters commit leniency error
-
The maximum pressure that can be developed for a certain fluid power cylinder is 15.0 MPa. Compute the required diameter for the piston if the cylinder must exert a force of 30 kN.
-
Describe the four basic business processes.
-
Down ham Industries recently completed several transactions relating to plant assets. For each transaction described, determine the dollar amount to be capitalized as well as the account title to be...
-
The following information is taken from the records of the Perry Company. Perry uses a perpetual inventory system. Determine the cost of goods sold for the month using FIFO and LIFO cost flow...
-
Electronic Games is moving very quickly to introduce a new interrelated set of video games. The initial investment for equipment to produce the necessary electronic components is \($9\) million, with...
-
True or False: The Consumer Price Index typically increases faster than the Higher Education Price Index.
-
Gooey Bites sells snack packs for \(\$ 3\) per pack. Variable expenses involved in producing snack packs are estimated to be \(\$ 1\) per pack, and fixed costs for operating the production line are...
Study smarter with the SolutionInn App