Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Timber Company presented a statement of financial position containing the following accounts among others: 120,000 360,000 : 2,200,000 200,000 Subscriptions receivable-preference Subscriptions receivable-ordinary Preference share

image text in transcribed

Timber Company presented a statement of financial position containing the following accounts among others: 120,000 360,000 : 2,200,000 200,000 Subscriptions receivable-preference Subscriptions receivable-ordinary Preference share capital, P100 par, authorized 100,000 shares, issued and outstanding 22,000 shares Preference share capital subscribed, 2,000 shares Ordinary share capital, P10 par value, authorized 200,000 shares, issued and outstanding 24,000 shares .. Ordinary share capital subscribed, 24,000 shares Share premium-preference Share premium - ordinary 240,000 240,000 80,000 950,000 The corporation was organized at the beginning of current year and immediately received subscriptions to 20,000 preference shares. Subscriptions to ordinary shares were received on the same date.. During the year, subscriptions were received for an additional 4,000 preference shares at a price of P120 per share. Cash payments were received from subscribers at frequent 1. intervals for several months after subscription. The entity followed a policy of issuing share certificates only when subscribers had paid in full. During the year, the entity issued 8,000 ordinary shares in exchange for a tract of land with a fair value of P230,000. Required: E a. Prepare journal entries out during the year as indicated by the account balances. b. Compute the amount of contributed capital for each class of share capital at year-end. . 743

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-12 With Study Guide And Working Papers

Authors: Jeffrey Slater

13th Edition

0133866300, 9780133866308

More Books

Students also viewed these Accounting questions

Question

Be able to suggest some future options for human resources

Answered: 1 week ago

Question

Be able to create a contract for consultant services

Answered: 1 week ago