Chapter 15 4-6

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Problem #6 Treasury Stock Transactions The Dec. 31, 2018 shareholders' equity section of Refozar Corporation's statement of financial position is as follows: Refozar Corporation Partial Statement of Financial Position December 31, 2018 Shareholders' Equity Share Capital Ordinary Shares, P4 par, 200,000 shares authorized, 150,000 shares issued and outstanding P 600,000 Share Premium 375,000 Total Share Capital P 975,000 Retained Earnings 365,000 Total Shareholders' Equity P1,340,000 Required: Prepare the journal entries to record the following transactions that took place during January 2019: cost Jan. 4 Method 10 Purchased 24,000 shares of its own Refozar's stock for P168,000. 29 Sold 4,000 shares of the treasury stock for P9 per share. 31 Sold 14,000 shares of the treasury stock for P6 per share. cost Sold the remaining 6,000 shares of treasury stock for P7 per share.Problem #5 Treasury Stock Transactions On Jan. 1, 2019, Gulane Corporation had the following balances in its shareholders' equity accounts: Ordinary Shares, P5 par P 500,000 Share Premium-Ordinary 2,000,000 Retained Earnings 7,000,000 On March 28, the corporation purchased 10,000 shares as treasury stock at P15, per share. On April 10, it sold 4,000 of the treasury shares at P14 per share. On July 5, it sold 2,000 shares at P16 per share. Required: 1. Calculate the number of shares issued and the number of shares outstanding on Jan. 1, Mar. 31, June 30, and Sept. 30, 2019 assuming no other equity transactions occurred. 5001:5= 1007, 10 0%- TS, 90,000+ 1, 00 2,000 + 947 2. Prepare the journal entries for the treasury stock transactions.,0. ' 3. Why would a corporation buy its own shares of stock? Shares Issued - fully paid forProblem #4 Subscription of Shares Sousa Caterers, Inc. was organized on May 13, 2019 and the articles stipulated the following authorized capital: a. 4,500 shares of preference shares, P110 par value b. 42,000 shares of ordinary shares, P30 par value Sousa Caterers, Inc. completed the following transactions during its first year of operations: May 8 Received subscriptions to 14,000 ordinary shares at P30 per share; collected 65% of the subscription price. June 7 Subscribers to 14,000 ordinary shares paid an additional 20% of the subscription price. July 6 Subscribers to 14,000 ordinary shares paid an additional 15% of the subscription price. Sousa Caterers, Inc. issued the 14,000 shares of stock. Sept. 14 Received subscriptions to 4,300 ordinary shares at P32 per share; collected 60% of the subscription price. Required: Prepare the journal entries