Y Ltd. Issued 10000 equity share of Rs. 100 each. Payable as Rs. 25 on application, Rs. 40 on allotment, Rs. 15 on first call and Rs. 20 on final call Applications were received for 11000 shares. Excess applications were rejected. All money duly received except from Mr. Mishra holding 100 shares paid both calls money along with allotment. Prepare journal to record above transactions in the books of Y Ltd.
Q: Oriole Company has issued 2,500 shares of common stock and 500 shares of preferred stock for a lump…
A: Common stock and Preference stock are two types of stock or shares that is being issued by the…
Q: Familia Ltd. purchased from its shareholders 5,000 shares of its own previously issued shares for…
A: Purchase price of Treasury stock : = $ 250000/5000 shares = $ 50
Q: Boy with luv Co. received 20,000 stocks right to subscribe for new shares at P45 per share for every…
A: Stock rights refers to the instrument which is issued through the companies for providing the…
Q: Arul Co. Ltd., has to redeem redeemable preference shares of the value of Rs. 4,00,000 at a premium…
A: Capital Redemption Reserve Account is maintained due to the companies act. It is related to buy -…
Q: Prepare general journal entries for the following transactions, identifying each transaction by…
A: The treasury stock includes the own shares purchased from the shareholders by the company. The…
Q: During its first year of operations, LEBANON COMPANY entered into the following transactions…
A: Ordinary shares or common shares are stocks sold on a public exchange by a company. It gives the…
Q: During its first year of operations, Victory, Inc. entered into the following transactions relating…
A: Following is the authorised capital of victory inc. : 240,000 ordinary shares ,P10 par per share…
Q: Joy Ltd issued 100000 equity shares of Rs.10 each. The amount was payable as follows: On application…
A: Formula: Total Allotment amount = Total number of shares allotted x Allotment amount per share.
Q: Nu Look Ltd. issued, 1,00,000 Equity Shares of Rs.10 each payable as follows: On Application (On…
A: 1. Following table shows the amount adjusted towards allotment, share first call and share final…
Q: On September 12, 3,800 shares of Aspen Company are acquired at a price of $60.00 per share plus a…
A: Brokerage commission paid to purchase the shares will be added to the cost of the shares.
Q: MUSCAT SAOG has registered its capital as 5,000,000 divided into 5,000,000 shares of OMR 1 each. The…
A: Calculation of number of shares rejected by the company:::: Offered shares::30,00,000.....…
Q: ARIES Inc. had the following transactions in the ordinary shares of May Corporation: anuary 5 Bought…
A: Company means the form of business where management is separately from owner and have perpetual…
Q: "Lucky Ltd. invited applications for 50,000 equity shares of Rs. 10 each, payable as Rs 2 on…
A: A forfeited share seems to be an equity share investment that is canceled by the issuing firm.…
Q: Rohit Ltd. Purchased assets worth Re. 41,80,000 from Bhuvnesh IndustrialCorporation and issued…
A: A company can issue its shares either at par, at a premium, or even at a discount. The shares will…
Q: ledger entries in the books
A: Application money received (50,000 shares @Ghc200) = Ghc10,000,000 Allotment money received (50,000…
Q: Sloan Co. issued 1,000 shares of its P5 par ordinary share to Mercy West as compensation for 1,000…
A: The share premium is the amount received on issuance of share in excess to the face value of shares.
Q: Amar trading Company issued 10,000 equity shares of Rs.10 each at a premium of Rs.2 per share. The…
A: The organization can raise funds for the operation song integrity by issuing common stock, preferred…
Q: Karnataka Pharma Ltd issued 1,000 equity shares of Rs.100 each at 5% discount. The amount was…
A: Shares are forfeited if the shareholder doesn’t payment the share price then the company forfeited…
Q: X Company made the following transactions: Received subscription of 10,000 preference shares with…
A: Preference shares are shares which don't have voting right but enjoys first right to receive…
Q: MUSCAT SAOG has registered its capital as 5,000,000 divided into 5,000,000 shares of OMR 1 each. The…
A: Paid up capital = Number of Shares upon which shares are fully paid x Called Up amount per share
Q: A company made an isue of 10,000 Equity shares of $ 10 each, payable $3 application; $ 4 on…
A: Issue of shares is said to be oversubscribed when the number of shares applied are more than the…
Q: A company issued 10000 equity shares of Rs. 100 each. The payment was called upon as under. On…
A: Whenever a shareholder fails to pay a call on shares which is a instalments of the issue price of…
Q: Assume that on February 12, First Union Co. purchases for cash 6,000 shares of Gilbert Co. stock at…
A: Total deividend received = No. of shares x Dividend per share = 6,000 shares x $0.42 per share =…
Q: Celestial Inc. issued 8,000 shares of its P10 par ordinary shares to a CPA for 600 hrs. of…
A: The company's main source of funding is its share capital. There are two sorts of shares. Ordinary…
Q: On January 1, Puroland Corporation was incorporated, with 100,000 authorized ordinaryshares of P100…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: On February 22, Triangle Corporation acquired 34,000 shares of the 500,000 outstanding common stock…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Ogag company issued 1,000 shares of its P5 par value ordinary shares as payment for 1,000 hours of…
A: Par. value of Ordinary Shares :- P5 No. Of Equity Shares issued :- 1000 shares Market Value of…
Q: Z Ltd allotted one million shares of 50 cents each, as 35 cents called up per share, requiring an…
A: Journal entry is the process of recording the business transactions in the books of accounts for the…
Q: Maganda Company had the following transactions for 20x5: a. On January 1, 20x5 Maganda Company…
A: SOLUTION- INVESTMENT IN EQUITY- INVESTMENT IN EQUITY SECURITIES IS THE CURRENT OR NON-CURRENT…
Q: VaughnCompany issued 2400 shares of its $5 par value common stock in payment of its attorney's bill…
A: Answer) Account Titles and Explanation Debit Credit Legal Expense $ 29,800…
Q: On June 23, 200C, Pinoy Trading owned and operated by Phil was incorporated. On this date, the…
A: As stated in the query Phil's Pinoy Trading, which he owns and operates, was incorporated on June…
Q: each. At the end of their first year of trading, after paying tax and dividends, the balan Delebi…
A: 1) Journal entry Cash A/c Dr 42,000,000 To…
Q: Loretta Inc. issues 2,000 shares of preferred stock in exchange for land and building that have a…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: une 23, 200C, Pinoy Trading owned and operated by Phil was incorporated. On this date, the balance…
A: In basic accounting equation the total assets must be equal to total equity and total liabilities…
Q: Patience Co. was authorized to issue 400,000 ordinary shares with a stated value of P20. The…
A: Share capital is considered as the portion of capital that is arisen from the investors. When an…
Q: Sab Theek Hai, a public listed company, acquired 75% of Ghabrana Nahi's ordinary shares on 1 April…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: Star Ltd. issued 1,00,000 shares of Rs. 10 each at a premium of Rs. 2 per share, payable as follows…
A: Equity shares are those shares which do not have preferential right on dividend and repayment of…
Q: Liberward, Inc., sold and issued 1,000 shares for $15 per share. The book value of the shares was…
A: Shares are a mean of raising capital from the shareholders. Shares can be ordinary shares or…
Q: Illustration 2 Eastern Company Limited issued 40,000 shares of Rs. 10 each to the public for the…
A: Authorized shares are the maximum no. of shares a company is allowed to issue to the general public.…
Q: Apex co. ltd. is registered with an authorized capital of rs5,00000 divided into shares of Rs10 each…
A: The shares issued to promoters are usually not issued against cash ,usually they are debited to…
Q: ABC Ltd., has part of its share capital as 10,000 Redeemable Preference Shares of Rs. 100 each. When…
A: Journal entries are used to record the transactions of business during its operations and it…
Q: Give the necessary Journal Entries to record the following transactions : a) A shareholder was…
A: Share issue is the main source of capital for almost every company. The amount due from the shares…
Q: Maganda Company had the following transactions for 20x5: a. On January 1, 20x5 Maganda Company…
A: Investment in equity securities is the current or non-current investment made by the firm in the…
Q: Brilliant Ltd is a private limited by shares incorporated under Cap. 622. It has firstly issued…
A: ●(a).Do the preference shareholders have any right to the dividends in arrears? Answer: The holders…
Q: On June 23, 200C, Pinoy Trading owned and operated by Phil was incorporated. On this date, the…
A: Corporation is one of the legal form of business organisation, under which several members invest…
Q: On January 4, 20Y4, Ferguson Company purchased 480,000 shares of Silva Company’s common stock…
A: Equity method of accounting is a method of accounting for investments. Investment in associate will…
Q: During its first year of operations, LEBANON COMPANY entered into the following transactions…
A: Shares can be exchanged for cash or issued in exchange for anything other than cash. The term "issue…
Q: Frankwood Company Ltd. was registered with the capital of Rs.5,000,000 divided into ordinary shares…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: total legal capital
A: Legal capital means the par value or stated value portion of the share capital.
Q: Al Khuwair Co. purchased a truck for RO 5,000 by issuing 200 shares of RO 10 par value shares for RO…
A: Journal entry: It is a set of economic events that can be measured in monetary terms. These are…
Step by step
Solved in 2 steps
- 003 E 4 b 005,19 d Item No. 2 is based on the following information: ad 2pd zi 2.0 ms11 60 Virma Corporation sold to a subscriber 500 shares of its P 30 par value ordinary shares at P 32 per share receiving a 30% down payment. to gulsv 15q 1 ! 2. In recording this transaction: ni. nani snt ad bluow tor/W 2 on I I a. Ordinary Share Capital will be credited in the amount of P 15,000. b. Ordinary Share Capital will be credited in the amount of P 16,000. Ordinary Share Premium will be credited in the amount of P 4,500. d. Subscribed Ordinary Share Capital will be credited in the amount of C. 00S, I 9 bms 39 P 15,000. .09 bms 00s.eg0. Duing ih frst year of operationa. Victory, Inc. entered into the tollwing transactions retating to shareholders' equity, PIO por per share and 30.000 preference shares P50 par pet share, > March 14-Sold 50.000 crdinary shares for F100 per shore > Morch 15- Issued 20.000 orcinary shares ta lawyers in exchange tor legal services omiounting to P 300,000, > Morch 15- Sold 35.000 ot its ordinary shares ond 10,000 preference shares for P6.000,000. Fair value of the ordinary shore in PICO. November 20- hued 1.900 of ih ovdnary shares in exchange for equipmient for which the cauh price was known to be PI85.000. Baed on the preceding information, determine the totai shareholders' equity. , Victory's articles of incorporation authorized the issue of 240,000 ordinary shares.E14-4 Issuing shares payable by instalments [10–15 min] Riverside Ltd is issuing shares payable by instalments. It completed the following transactions: Received an application for 2000 ordinary shares with a total issue price of $10 per share. The applicant paid one-quarter of the total issue price. Allotted the 2000 shares and collected a further half of the total issue price. Made a call on the shares and collected the balance still due. May 3 May 18 Aug 3 Requirement Record these transactions in the general journal. Explanations aren't required.
- Answer with computation and explanation X Company sold 1,000 ordinary shares at par of P20 per share for P50,000. The journal entry to record the transaction would have a a credit to ordinary shares for P50,000. b credit to share premium for P20,000 C. credit to ordinary shares of P20,000. d. debit to share premium of P30,000& NO.3 The following is the capital Strudhure of ABC Ltd. Snare Specific dc. 11%0 Amount 2quity share capital (2,00,000 shares of Rs- ID each). Preference share capital (So.00D shares of Rs.10 each) Retained Farnings 7.5% Debentures of Rs 1000 each. R$ 20,00,000 Bs S,D0,000 Rs 1D.00,000. 11% Bs IS,00,00. Presently the debentures are being traded at 94% , Preference dhares at par and the equithy shares at R6.13 þer share. Pind out the WACC based on the book value weights and market value loeights.7. On Dec. 31, 2018, selected accounts from the trial balance of Dimaculangan, Inc. shoed up the following balances. Debit Credit • Retained Earnings Subscribed Ordinary Shares, 2 000 shares P1 550 000 100 000 • Long-term Notes Payable 5% Preference Shares, P100 par Share Premium-Ordinary • Subscriptions Receivable Share Premium-Treasury • Organization Expense 600 000 1 500 000 1 350 000 P 120 000 280 000 200 000 Share Premium-Preference 850 000 • Ordinary Shares, P50 par • Donated Capital Treasury Stock, 450 shares at 2 500 000 590 000 40 000 Cost Dimaculangan was authorized by its articles of incorporation to issue 500 000 shares of P50 par ordinary shares and 25 000 shares of P100 par cumulative nonparticipating preference shares. Note that the subscriptions receivable are collectible next year. Required: Choose the appropriate shareholders' equity accounts from those listed above and prepare the shareholders' equity section of Dimaculangan, Inc.'s Dec. 31, 2018 statement of…
- Q.8 Company offered 10,000 ordinary shares of Rs. 10 at Rs. 9. Company received 15,000 shares application. They allotted Shares against application receipt and refund excess money. Requirement: Pass the necessary journal entries.Q.2 The following is the Fine Organics Ltd. as on 31stMarch current year. Equity Share: 10000 Share (Rs. 100 FV each) = Rs. 10000012% Preference Share (of Rs. 100 each) = Rs. 40000010% Debentures = Rs. 600000The market price of the company’s share is Rs 110 and it is expected thata dividend of Rs 10 per share would be declared at the end of the currentyear. The dividend growth rate is 6 per cent.If the company is in the 35 per cent tax bracket, compute the weighted average cost of capitalbased on book value weights. (use excel)Item No. 10 is based on the following information: cod 010 EL bna S...20M mest sina310 26W vnsqmo) Ov618 to sninnised Sweety Corporation sold 4,000 ordinary shares with a par value of P 100 Osmontu 95 per share to a subscriber for P 105 per share receiving an initial payment of 30% of the subscription price. After repeated demands for the subscriber to pay the 19DTONS 67 remaining balance but to no avail, the corporation was forced to sell the delinquent shares at a public auction, incurring advertising costs of P 24,000. Suce HP 10. What should be the minimum bid price for the delinquent shares? 08 a. P 280,000. art now briel to 1061 8 16 c. P 304,000. b. P 294,000. d. P 318,000. as muime19 3162 vienibo not fogs ove18 bluoria nuor i Ö W SE
- ABC Co issues 80,000, 1 OMR shares for OMR120,000. The amount of premium per share will be a. OMR 0.500 baisa b. OMR 3 c. OMR 1.500 d. OMR 1Refer to the following: On December1.20x1, Line Corp recelvud ecoration.of 2 000 shees dfiS P5 par value ordinary shareS from a shareholder On that date, the sk s narket y K was Pper share The stock was or gnaly issued for P25 per share By what anGut wauld B denorcHe lotal stckholders eguly to decrcase? 50,000 20,000 O 70,0007) A ltd was registered with an authorized capital of Rs.6,00,000 in equity shares of Rs.10 each. The following is its Trail Balance on 31 March 2008. Particulars Debit Balance Rs. Credit Balance Rs.Goowill 25000 Cash 750 Bank 39900 Purchases 185000 Prelimiary Expenses 5000 Share capital 40000012% Debentures 300000P&L A/C (Cr.) 26250Calls-in-arrears 7500 Premises 300000 Plant & Machinery 330000 Interim Dividend 39250 Sales 415000Stock (1-4-2007) 75000 Furniture & Fixtures 7200 Sundry Debtors 87000 Wages 84865 General Expenses 6835 Freight and Carriage 13115 Salaries 14500 Directors Fees 5725 Bad debts 2110 Debenture Interest paid 18000 Bills Payable 37000Sundry Creditors 40000General Reserve 25000Provision for bad debts 3500Total 12,46,750 1246750 Prepare Profit & Loss Account, Profit…