Gel Company was organized on January 1, 2022 with 100,000 authorized shares of P100 par value January 15 Sold 30,000 shares at P150 per share February 14 Issued 2,000 shares for legal services with a fair value of P300,000 The shares on this date are quoted at P160 per share March 27 Purchased 5,000 treasury shares at a cost of P12 per share October 31 Issued P4,000,000 convertible bonds at 110 The bonds are quoted at 97 without the conversion feature November 5 Declared a 2 for 1 share split when the market value of the share was P160 December 17 Sold 10,000 shares at P75 per share What total amount should be recognized as share premium on December 31, 2022 A 1,830,000 B 1,850,000 C 2,390,000 D 2,370,000 Bacquirin Company provided the following postclosing trail balance at year end Debit Credit Accounts payable and accrued liabilities 3,000,000 Accounts receivable 6,000,000 Accumulated depreciation 2,500,000 Allowance for doubtful accounts 800,000 Bonds payable 5,000,000 Property, plant, and equipment 11,000,000 Cash 2,500,000 Ordinary share capita, P50 par value 6,000,000 Dividends payable 200,000 Inventory 8,000,000 Available for sale securities 3,500,000 Investment in equity securities, at cost 2,000,000 Unrealized loss on interest rate swap designated as cash flow hedge 500,000 Share premium ordinary in excess of par from 5,000,000 Share premium from sale of treasury 1,000,000 Preference share capital, P25 par value 6,500,000 Treasury ordinary shares 20,000 at cost 1,500,000 Total 35,000,000 35,000,000 The dividend on cumulative preference share capital is 10 The preference share has a liquidation value of P50 What amount should be reported as shareholders equity A 22,000,000 B 21,500,000 C 21,700,000 D 23,500,000 Use the following information for the next three (3) questions Toyoya Company has two classes of share capital outstanding consisting of 12 , P100 par value preference share and P50 par value ordinary share The entity reported the following balances at the beginning of the current year Preference share capital 5,000 shares 500,000 Ordinary share capital 50,000 shares 2,500,000 Share premium PS 200,000 Share premium ordinary 500,000 Retained earnings 2,000,000 The following data summarize the transactions for the current year Shares Per share Issued ordinary share capital 20,000 50 Purchase of treasury ordinary 5,000 60 Share split ordinary 2 for 1 Reissue treasury share 3,000 40 Shareholders donated 15,000 ordinary shares to the corporation Subsequently, 10,000 donated shares were reissued at P40 per share Net income for the year was P500,000 Appropriated retained earnings equal to the cost of treasury shares What amount should be reported as total share premium at year end A 1,130,000 B 2,230,000 C 2,780,000 D 2,880,000 What amount should be reported as unappropriated retained earnings at year end A 3,000,000 B 2,290,000 C 2,740,000 D 2,800,000 What amount should be reported as shareholders equity A 7,210,000 B 7,330,000 C 7,420,000 D 7,620,000

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 05, 2024

Gel Company was organized on January 1, 2022 with 100,000 authorized shares of P100 par value. January 15 Sold 30,000 shares at P150 per share.

Gel Company was organized on January 1, 2022 with 100,000 authorized shares of P100 par value.

January 15 Sold 30,000 shares at P150 per share.

February 14 Issued 2,000 shares for legal services with a fair value of P300,000. The shares on this date are quoted at P160 per share.

March 27 Purchased 5,000 treasury shares at a cost of P12 per share.

October 31 Issued P4,000,000 convertible bonds at 110. The bonds are quoted at 97 without the conversion feature.

November 5 Declared a 2-for-1 share split when the market value of the share was P160.

December 17 Sold 10,000 shares at P75 per share.

What total amount should be recognized as share premium on December 31, 2022?

1,830,000

1,850,000

2,390,000

2,370,000

Bacquirin Company provided the following postclosing trail balance at year-end:

	Debit	Credit
Accounts payable and accrued liabilities		3,000,000
Accounts receivable	6,000,000
Accumulated depreciation		2,500,000
Allowance for doubtful accounts		800,000
Bonds payable		5,000,000
Property, plant, and equipment	11,000,000
Cash	2,500,000
Ordinary share capita, P50 par value		6,000,000
Dividends payable		200,000
Inventory	8,000,000
Available for sale securities	3,500,000
Investment in equity securities, at cost	2,000,000
Unrealized loss on interest rate swap designated as cash flow hedge	500,000
Share premium ordinary in excess of par from		5,000,000
Share premium from sale of treasury		1,000,000
Preference share capital, P25 par value		6,500,000
Treasury ordinary shares 20,000 at cost	1,500,000	--
Total	35,000,000	35,000,000

The dividend on cumulative preference share capital is 10%. The preference share has a liquidation value of P50. What amount should be reported as shareholders equity?

22,000,000

21,500,000

21,700,000

23,500,000

Use the following information for the next three (3) questions:

Toyoya Company has two classes of share capital outstanding consisting of 12%, P100 par value preference share and P50 par value ordinary share. The entity reported the following balances at the beginning of the current year:

Preference share capital 5,000 shares	500,000
Ordinary share capital 50,000 shares	2,500,000
Share premium PS	200,000
Share premium ordinary	500,000
Retained earnings	2,000,000

The following data summarize the transactions for the current year:

	Shares	Per share
Issued ordinary share capital	20,000	50
Purchase of treasury ordinary	5,000	60
Share split ordinary	2 for 1
Reissue treasury share	3,000	40
Shareholders donated 15,000 ordinary shares to the corporation. Subsequently, 10,000 donated shares were reissued at P40 per share.
Net income for the year was P500,000.
Appropriated retained earnings equal to the cost of treasury shares.