Beruflich Dokumente
Kultur Dokumente
Exercise 1
a)
Aug. 1 Authorized to issue 50,000 8% preference shares at
P100 par and 100,000 ordinary shares at P50 par.
b)
Preference Shares:
Authorized to issue 50,000 preference shares par P100
Issued 25,000 shares P2,500,000
Ordinary Shares:
Authorized to issue 100,000 ordinary shares par P50
Issued 48,000 shares 2,400,000
Subscribed 2,000 shares 100,000
Additional Paid In
Preference Share Premium 60,000
Ordinary Share Premium 100,000
Total Paid In P5,160,000
Ex .2 a)
2014
May1 Authorized to issue 100,000, 12% Cumulative
Preference shares at P100 per share
43
Cash 1,500,000
Subscription Receivable-Preference Share(3,000,000 x .25) 750,000
Subscription Receivable-Ordinary Share (3,000,000 x .25) 750,000
To record downpayment of incorporators.
June
05 Organization Expense 120,000
Cash 120,000
Paid for organization cost.
15 Cash 137,500
Subscription Receivable-Preference Share 137,500
18 Land 75,000
Ordinary Share Capital 70,000
Ordinary Share Premium 5,000
20 Cash 750,000
Subscription Receivable-Preference Share 375,000
Subscription Receivable-Ordinary Share 375,000
30 Cash 1,500,000
Subscription Receivable-Preference Share 750,000
Subscription Receivable-Ordinary Share 750,000
Shareholders’ Equity:
Paid In Capital
Authorized 100,000 18% cumulative preference
shares, at P100 par
Issued and Outstanding Preference Share, 30,000 P3,000,000
Subscribed 5,000 500,000
Authorized 200,000 common shares, at P50 par
Issued and Outstanding Ordinary Shares, 91,400 4,570,000
Cash 156,250
Subscripton Receivable-ordinary shares 156,250
Cash 250,000
Subscription Receivable – preference share 250,000
28 Cash 234,375
Subscription Receivable-Ordinary shares 234,375
10 Cash 70,400
Subscription Receivable – ordinary share 70,400
18 Cash 250,000
Subscription Receivable – preference share 250,000
c) Legal Capital:
Preference Share, issued and outstanding P 685,000
Ordinary shares issued and outstanding 60,000
Subscribed ordinary shares 665,000
Paid in Capital in excess of stated value 24,000
Total Legal Capital P1,434,000
Ex 4.
Cash 18,433
Due from Highest Bidder 38,333
Interest Income (33,333 x .18 /12= 500 per mo / 2) 250
Ex. 5.
Ordinary Treasury Shares 18,333
Due form Highest Bidder 18,333
6. Journal Entries:
2014 Jan 1 Authorized to issue 50,000 common shares at
P100 par value
Cash 312,500
Subscription Receivable- Ordinary Shares 312,500
31 Cash 445,312.5
Subscription Receivable-Ordinary Shares 445,312.5
46
Ordinary Share Capital 950,000
Cash 24,812.5
Due from Highest Bidder 24,812.5
Shareholders’ Equity
Ordinary Shares, par 100, issued 9,900 of which 100 P990,000
shares are in the treasury
Share Premium 50,000
Paid In Capital from Stock Retirement 2,000
Retained Earnings
Free P1,191,250
Appropriated for Treasury Shares 8,000 1,199,250
Total 2,241,250
Less Treasury Shares (100 shares) (8,000)
P2,233,,250
Ex. 8.
Aug 12 Cash (1,500 x 55) 82,500
Retained Earnings 7,500
Treasury Shares (1,500 x 60) 90,000
Shareholders’ Equity:
Ordinary Shares, 18,000 issued P900,000
Share Premium 121,622
Paid in capital from treasury shares 1,378
Retained Earnings 4,492,500
Ex. 9.
June 5 Preference Share Capital 50,000
Paid In Capital in Excess of Par 5,000
Retained earnings 20,000
Cash 75,000
Shareholders’ Equity
Redeemable Preference Share, P100 par, 4,000 issued
and outstanding P 400,000
Preference Share Premium 45,000
Paid In Capital from Stock Retirement 5,000
Retained Earnings 80,000
Total Shareholders’ Equity P530,000
b) NINA Corp.
Shareholders’ Equity Section
As of Dec. 31, _
Capital stock. Par P10,issued 199,500 of which1,500 P1,995,000
are in the treasury
Additional paid In Capital
Share Premium P 97,500
Donated Capital 15,000
Paid In From treasury Shares 4,000
Paid in From Stock Retirement 1,500 118,000
Retained Earnings
Appropriated for Treasury Shares 15,000
Unappropriated 535,000 550,000
Total 2,663,000
Less Treasury Shares ( 1,500 at cost ) 15,000
48
P2,648,000
Paid In Capital
18% Preference Share Capital, par value of P100
authorized 10,000 shares, issued and outstanding,
8,000 shares P 800,000
Subscribed Preference Share Capital P100,000
Less Subscription Receivable, Preference Share 40,000 60,000 P 860,000
Ordinary Share Capital, no par, authorized 25,000 shares
Stated value of P100, issued 15,000 shares of
which 1,000 shares are in the treasury P1,500,000
Subscribed Ordinary Share Capital P50,000
Less Subscription Receivable, Ordinary share 20,000 30,000 1,530,000
Total P2,390,000
Additional Paid in Capital
Premium on Preference Shares P 10,000
Paid In Capital in Excess of Stated Value 15,000
Donated Capital 75,000 100,000
Retained Earnings
Unappropriated Retained Earnings P 45,000
Appropriated Retained earnings for Treasury Shares 120,000 165,000
Total P2,655,000
Less Treasury Shares (at Cost) 1,000 ordinary shares 120,000
Total Shareholders’ Equity P2,535,000
Unissued 33,000
Subscribed 2,000
31,000
Legal Capital
Preferred Stock, issued P1,700,000
Preferred Stock, Subscribed 200,000
Common Stock, issued 500,000
Paid in capital in excess of stated value 55,000
Total P2,455,000
25 Cash 81,250
Interest Income 750
Due from highest Bidder 80,500
20 Cash 70,000
Unissued Ordinary Shares (500 x P100) 50,000
Paid In Capital In Excess of Stated Value 20,000
Legal Capital
Preferred Stock, issued P1,600,000
Common Stock, issued 550,000
Paid In Capital in Excess of Stated Value 75,000
Total P2,225,000
ETHICAL ISSUE
1) Loyalty to company means protecting the rights, interests and resources of company.
2) There is conflict of interest when officers act and violate corporate policy to push their own personal interest.
ACCOUNTING ISSUE
1) Your right over the corporation will decrease 5,000/100,000 or 5% to 5,000/300,000 or 1.67%
2) You have to buy 5% of 200,000 or 10,000 shares. Total shares will be 15,000/300,000 will still be 5%.
3) Option price of P1,250 x 10,000 shares in P12,500,000.
50