PROBLEM 32:CYPRUS COMPANY began operation on January 1. Authorized were 20,000 shares of P10 par value ordinaryshares and 40,000 shares of 10%, P 100 par value preference shares. The following transactions involvingshareholders' equity occurred during the first year of operations.January 1February 23March 10April 10July 14August 3December 1Issued 500 ordinary shares to the corporation promoters in exchange for property valued atP170,000 and services valued at P70,000. The property had cost the promoters P90,000 3 yearsbefore and was carried on the promoters' books at P50,000.31Issued 10,000 preference shares with a par value of P100 per share. The shares were issued at aprice of P150 per share, and the company paid P75,000 to an agent for selling the shares.Sold 3,000 ordinary shares for P390 per share. Issue costs were P25,000Cordillera Career Development CollegeCOLLEGE OF BUSINESS EDUCATION AND ADMINISTRATIONBuyagan, Poblacion, La Trinidad, Benguet4,000 ordinary shares were sold under share subscription at P450 per share. No shares areissued until a subscription contract is paid in full. No cash was received.Exchanged 700 ordinary shares and 1,400 preference shares for a building with a fair marketvalue of P510,000. The building was originally purchased for P380,000 by the investors and has abook value of P220,000. In addition, 600 ordinary shares were sold for P240,000 in cash.Received payments in full for half of the share subscriptions and payments on account on the restof the subscriptions. Total cash received was P1,400,000. Shares were issued for thesubscriptions paid in full.Declared a cash dividend of P10 per share on preference shares, payable on December 31 toshareholders of record on December 15, and a P20 per share cash dividend on ordinary shares,payable on January 5 of the following year to shareholders of record on December 15.Paid the dividend to preference shareholders.Net income for the first year of operations was P600,000Based on the receding information, calculate the balances of each of the following accounts:1. Preference sharesA. P1,140,000B. P1,000,0002. Share premium - preference sharesA. P425,000B. P90,0003. Ordinary sharesA. P88,000B. P68,0004. Share premium - ordinary sharesA. P3,707,000B. P3,110,0005. Retained earningsA. P310,000B. P600,000C. P1,655,000D. P1,795,000C. P515,000D. P545,000C. P61,000D. P62,000C. P1,920,000D. P3,617,000C. P350,000D. P290,000

"Since you have asked a question with sub-parts more than three, as per guidelines, the first three…

Answered: CYPRUS COMPANY began operation on…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter8: Liabilities And Stockholders' Equity

Section: Chapter Questions

Problem 8.23E

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Single A Company is authorized to issue 100,000 preference shares with par value of 50 per share and 2,000,000 ordinary shares with stated value of 8 per share. Below are the transactions of the company for the first year of operations: • Issued 2,000 preference shares in exchange for land with fair value of 165,000 • Issued 50,000 ordinary shares at 10 per share. • Issued 3,000 preference shares to pay the company's loans payable with book value of 265,000 • Issued 60,000 ordinary shares for 567,500 cash. • Issued 500 preference shares as payment for attorney's fees with fair value of 27,500 • Issued 200,000 ordinary shares in exchange for building with fair value of 2,300,000. • Reacquired 700 preference shares from shareholders bought at 65 per share. Reacquired 25,000 ordinary shares from shareholders purchased for a total price of 236,000 • Reissued 500 preference treasury shares at 70 per share Reissued 15,200 ordinary treasury shares at 10.30 per share. • A shareholder donated…
15 Starr Corporation was organized on January 1, 20X1, with an authorization of 400,000 shares of common stock with a par value of $6 per share. During 20X1, the corporation had the following capital transactions: January 5 July 28 December 31 issued 225,000 shares @ $10 per share purchased 30,000 shares @ $11 per share sold the 30,000 shares held in treasury @ $18 per share Starr used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of additional paid-in capital as of December 31, 20X1? a. $-0-. b. $690,000. $900.000. d. $1,110,000.
Problem 16-12 (AICPA Adapted) Maxim Company acquired 40,000 ordinary shares on October 1 for P6,600,000 to be held for trading. On November 30, the investee distributed a 10% ordinary share dividend when the market price of the share was P250. On December 31, the entity sold 4,000 shares for P1,000,000. What amount should be reported as gain on sale of investment in the current year? a. 340,000 b. 400,000 c. 500,000 d. 600,000
When Bayou Corporation was formed on January 1, 20xx, the corporation was authorized to issue 100,000 share of $10 par value common stock.The following transaction was among those engaged in by the corporation during its first month of operation:The corporation issued 9,000 shares of stock at a price of $25 per share.The entry to record the above transaction would include a Select one: a. debit to Cash for $90,000 b. credit to Paid in Capital in Excess of Par for $135,000 c. credit to Common Stock for $225,000 d. debit to Common Stock for $90,000
Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.
Copper Corporation was organized in May. It is authorized to issue 50,000,000 shares of $200 par value 7% preferred stock. It is also authorized to issue 75,000,000 shares of $5 par value common stock. In its first year, the corporation has the following transactions: Journalize the transactions.
A corporation issues 6,000 shares of $1 par value stock for a parcel of land valued at $12,000. Prepare the journal entry to reflect this transaction.
A corporation issues 5,000 shares of $1 par value stock for some equipment with a clearly determined value of $10,000. Prepare the journal entry to reflect this transaction.
At 1 Jul 20X4 a company’s capital and share premium account of a company were as follows:Ordinary share capital $75,000(300,000 shares of 25c each)Share premium account $200,000In the year ended 30 June 20X5 the following event took place: 1.On 1 January 20X5 the company made a rights issue of 1 share for every 5 held at $1.20 per share2.On 1 April 20X5 the company made a bonus issue of 1 share for every 3 in issue at that time, using the share premium account to do so. What are the correct balance on the company’s capital and share premium account at 30 June 20X5?Ordinary share capital Share premium accountA $120,000 $227,000B $120,000 $137,000C $460,000 $287,000D $480,000 $137,000
A Company had the following long-term investments at the beginning of the current year: Investment in SMC preference shares, 12% P200 par, 5,000 shares 1,200,000 Investment in Benguet ordinary shares, 10,000 shares 1,000,000 During the current year, the following transactions were completed: 1 Purchased 4,000 ordinary shares of SMDC for P300,000. 2 Received 2,000 ordinary shares of Benguet Company in lieu of cash dividends of P10 per share. On this date, Benguet ordinary share has a quoted market of P60. 3 Purchased 6,000 ordinary shares of SMDC for P420,000. 4 Received semiannual dividend on SMC Company. 5 SMDC ordinary share was split on a 2-for-1 basis. 6 Sold 8,000 SDMC shares at P85 less transaction costs of 5%. Use average approach. Required: Prepare a summary of the portfolio of investments stating the number of shares and the corresponding costs. B Company had the following transactions: 2018 Aug-01 Purchased 1,000 shares of Star Company for P60,000. Oct-01 Purchased 8,000…
Noelle Company began operations on January 1. Authorized were 120,000 shares of P10 par value ordinary shares and 240,000 shares of 10%, P100 par value preference shares. The following transactions involving shareholders' equity occurred during the first year of operations: Issued 30,000 ordinary shares to the corporation promoters in exchange for land valued at P1,020,000 and services valued at P420,000. The property had cost the promoters P540,000 three (3) years before and was carried on the promoters' books at P300,000. Jan 1 Feb 23 Issued 60,000 preference shares with a par value of P100 per share. The shares were issued at a price of P150 per share, and the company paid P450,000 to an agent for selling the shares. Mar 10 Sold 18,000 ordinary shares for P390 per share. Issue costs were P150,000. Apr 10 24,000 ordinary shares were sold under share subscriptions at P450 per share. No shares are issued until full payment of a subscription contract. No cash was received as a down…
Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first year, the company has the following transactions: Jan. 31 Issued 40,000 shares at $10 share Jun. 10 Issued 100,000 shares in exchange for land with a clearly determined value of $850,000 Aug. 3 Purchased 10,000 shares of treasury stock at $9 per share Journalize the transactions B. Calculate how many shares of stock are outstanding at August 3.

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