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Steam Company disclosed the following information for the year ended
December 31, 2014:
Bonds Payable 300,000
Share Premium on ordinary share 50,000
Donated Capital 40,000
Treasury Share at Cost 20,000
Ordinary Share Capital,par 100 500,000
Ordinary Share option warrants 100,000
Investment in available for sale securities 70,000
Share premium from treasury share 15,000
Accumulated Profits and losses 135,000
What is the total shareholders equity of Steam Company for the year
ended December 31, 2014?
Hallway company issued 20,000 shares of its P10 par value ordinary
share and 40,000 share of its P10 par value convertible preference
share for a total amount of 1,800,000. At this date, Hallways
ordinary share was selling P20 per share and the convertible share
were selling for P30 per share.
What amount of the proceeds should be allocated to the ordinary
shares?
What amount of the proceeds should be allocated to the preference
shares?
The company uses the cost method of accounting for treasury share
and the following transaction took place:
Acquired 2,000 shares of its share for 70,000. Sold 1,200 treasury
shares at 40 per share. Retired the remaining treasury shares.
On January 2, 2014 Guide sold the treasury shares on the open market
at 200 per share.
What is the effect on the shareholders equity as a result of the
sale of treasury shares?
Francisco Company was organized on January 2, 2014 with 300,000
ordinary shares with a P6 par value authorized. During 2014,
Francisco had the following stock transactions:
January 2 Issued 60,000 shares at P10 per share
March 8 Issued 20,000 shares at P11 per share
May 11 Purchased 7,500 shares at P12 per share
July 2 Issued 15,000 shares at P13 per share
August 17 Sold 5,000 treasury shares at P14 per share
Francisco uses the FIFO method for purchase and sold purposes
During 2013, Limb Company issued 10,000 shares of 100 par value
convertible preference share for 110 per share. One preference share
can be converted into 3 shares of Limbs P25 par ordinary share at
the option of the preference shareholder. On December 31, 2014 when
the market value of the ordinary shares was P40, the entire
preference share was converted.
How much should be Limb credit to Share Premium as a result of the
conversion?
How much is the total contributed capital for December 31, 2014?
Under the cost method of accounting for treasury shares, what is the
journal entry for the reissuance of treasury shares?