The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty identified the following costs in relation to the share issue: Professional fees of P40,000. Internal management time in managing the process of P30,000. These costs are deductible in arriving at the entity’s income tax liability. The current rate of tax is 30%. In accordance with PAS32 Financial instruments: presentation, the increase in equity in the statement of financial position of Resty as a result of the transaction will be a. P360,000 b. P332,000 c. P320,000 d. P311,000
Q: On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary shares for…
A: GIVEN On January 2, 2020, Tuao Company purchased 10% of Abulug Company's outstanding ordinary…
Q: If CARDO Co purchases the net assets of SYANO Co by issuing 4,000 shares of their P10 par value…
A: Computation of the total assets at the date of acquisition:
Q: Inn Corporation had 30,000 ordinary shares of NPA Company which were acquired during Year 2 for a…
A: Number of bonus shares = 30000 x 20%= 6000 shares Number of shares as on December 31, Year 3 =…
Q: Hamilton Boats issued 175,000 shares of its no-par common stock to Sudoku Motors in exchange for…
A: Common stock are the ordinary shares issued by a company to the public in return of share of…
Q: balance in Tuao’s investment in Abulug Company
A: Balance of investment in other entity = Cost of investment + (Profit of the other entity *…
Q: 1.Assume no significant influence was acquired. Prepare the appropriate journal entries from the…
A: Requirement 1: Pass necessary journal entry.
Q: Cory Company issued 120,000 shares of its P10 par ordinary to Fuzzy Inc. in lieu of a real estate…
A: Share Premium account will be credited with the difference between par value of share and issue…
Q: REQUIREMENTS: A. Consolidated Total Assets at the date of acquisition B. Consolidated Equity at the…
A: Calculation of Consolidate Total Asset at the date of Acquisition:
Q: Cory Company issued 120,000 shares of its P10 par ordinary to Fuzzy Inc. in lieu of a real estate…
A: Share premium Share premium is the additional premium amount which is collected by the entity to…
Q: On January 1, 2022, Bumili Co. purchased 10,000 shares of Nabili, Inc. for P1,000,000. Commission…
A: Unrealized Gain on Investment: In accounting, an unrealized gain is a rise in the value of an asset…
Q: On January 1, 2022, Bumili Co. purchased 10,000 shares of Nabili, Inc. for P1,000,000. Commission…
A: Unrealized Gain on Investment: In accounting, an unrealized gain is a rise in the value of an asset…
Q: If CARDO Co purchases the net assets of SYANO Co by issuing 4,000 shares of their P10 par value…
A: Computation of Consolidated Total Equity at the date of Acquisition:
Q: On January 1, 2022, Bumili Co. purchased 10,000 shares of Nabili, Inc. for P1,000,000. Commission…
A: In the books of Bumili Co. , On 1st January, 2022 : Purchase (10,000 shares) = P1,000,000 I.e Share…
Q: Relay Company is permitted to issue 500,000 ordinary shares of P10 par value. During the first year…
A: Contributed Capital is the total amount contributed by the owners and also includes shares premium.…
Q: Cblue Company owned 900,000 shares of Flight Company. On December 31, 2004, when the investment had…
A: The share means the smallest unit of the company's ownership. The shares are issued by the company…
Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value…
A: Calculation of Total Cash to be shown in the Consolidated Balance Sheet Cash Balance of Pamigay Corp…
Q: On April 1, Pujols, Inc., exchanges $430,000 fair-value consideration for 70 percent of the…
A: Non-Controlling Interest: It refers to an ownership position where a shareholder owns less than…
Q: Hamilton Boats issued 175,000 shares of its no par common stock to Sudoku Motors in exchange for…
A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…
Q: Lewelling Company issued 100,000 shares of its $1 par common stock to the Michael Morgan law firm as…
A:
Q: COMBO Co. issued 20,000 shares of its P25 par value ordinary shares and 4,000 shares of its P50 par…
A: No of ordinary shares 20,000 @ P25 500000 No of Preference shares 4000@50 200000 Cash 3,50,000…
Q: On June 1, Smart Company issued 8,000 shares of its P100 par ordinary share capital to Dix for a…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: market values of P20 and P2,300,000, respectively. Moreover, it agreed to pay an additional P170,000…
A: Purchase Consideration is the amount paid in consideration for the fair value of net assets in…
Q: On January 2, 2020, Tuao Company purchased 10% of Abulug Company’s outstanding ordinary shares for…
A: Formula: Ending capital = Beginning capital + Net income - Dividends paid
Q: Matthew Company issues 4,000 ordinary shares to its external lawyers for services related to the…
A: Expense refers to the decrease in the asset value because it is used for generating the revenue or…
Q: 13. The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty…
A: Solution:- Calculation of the increase in equity in the statement of financial position of Resty…
Q: First Link Services granted 8 million of its $1 par common shares to executives, subject to…
A: Total compensation cost pertaining to the restricted shares = 8,000,000 shares x $6…
Q: egistering and iss
A: It is given that the balance sheet information of January 2, 2021 PAMIGAY CORP.
Q: On January 1, 202X, Dianne Corporation acquired the net assets of Cyril Corporation by issuing…
A: Goodwill is determined at the measurement date and it can be modified in the provisional period of…
Q: During the year just ended, Shering Distributors, Inc., had pretax earnings from operations of…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: How much is the unrealized gain (loss) recognized in Bumilis 2022 profit or loss?
A: Unrealized gain or loss is the amount of gain or loss which the company has taken into account by…
Q: REQUIREMENTS: A. Consolidated Total Assets at the date of acquisition B. Consolidated Equity at the…
A: A. Calculation of Consolidate Total Asset at the date of Acquisition: Answer: Consolidated Total…
Q: Of the amount paid for the investment, how much is attributable to goodwill? How much is the…
A: Acquisition costs are the sum of the costs incurred by the business in acquiring a new client or…
Q: The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty…
A: Solution:- Calculation the increase in equity in the statement of financial position of Resty as…
Q: On January 1, Paisley, Inc., paid $560,000 for all of Skyler Corporation’s outstanding stock. This…
A:
Q: which were acquired during Year 2 for a total consideration of Inn Corporation had 30,000 ordinary…
A:
Q: Inn Corporation had 30,000 ordinary shares of NP which were acquired during Year 2 for a total…
A: Introduction Equity investments are measured at initial recognition in the beginning and at fair…
Q: On April 1, Pujols, Inc., exchanges $430,000 fair-value consideration for 70 percent of the…
A: Non-controlling interest on balance sheet equals the proportionate share of the non-controlling…
Q: Determine the amount of goodwill or gain on bargain purchase from the above transaction. Give the…
A: Goodwill is determined at the measurement date and it can be modified in the provisional period of…
Q: The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty…
A: Issuance costs=Professional fee+Internal management time expense=P 40,000+P 30,000=P 70,000
Q: Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2020, by issuing…
A: A business combination is a transaction in which a buyer takes over control of another company (the…
Q: Inn Corporation had 30,000 ordinary shares of which were acquired during Year 2 for a total…
A: Answer - December 31, Year 2 ledger balance (30,000 x P65) P1,950,000 Cost…
Q: On June 1, Jungkook Corporation issued 8,000 shares of its P100 par ordinary share capital to Jimin…
A: Total market value of ordinary shares = No. of shares x Market value per share = 8000 shares x P150…
Q: ABC Company is in financial difficulties and agreed to issue 20,000 of its P20 par value shares in…
A: Here discuss about the details of extinguishment of debt while incurred the equity swap to the loan…
Q: Inn Corporation had 30,000 ordinary shares of NPA Company which it acquired during Year 2 for a…
A: Answer - Working Note : December 31, Year 2 ledger balance (30,000 shares x 65)…
Q: If CARDO Co purchases the net assets of SYANO Co by issuing 4,000 shares of their P10 par value…
A: Calculation of Consolidate Total Asset at the date of Acquisition:
Q: COMBO Co. issued 20,000 shares of its P25 par value ordinary shares and 4,000 shares of its P50 par…
A: Assets acquired should be entered in books of accounts at fair value of assets. Equipment having…
Q: On January 2, 2021 PAMIGAY CORP paid P380,000 cash and issued 120,000 new shares of its P5 par value…
A: 1. Cash to be presented on the consolidated statement of financial position as of the date of…
Q: On January 1, 202X, Dianne Corporation acquired the net assets of Cyril Corporation by issuing…
A: Goodwill is the reputation of company which is gained by the entity during the course of its…
The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80
each. Resty identified the following costs in relation to the share issue:
Professional fees of P40,000.
Internal management time in managing the process of P30,000.
These costs are deductible in arriving at the entity’s income tax liability. The
current rate of tax is 30%.
In accordance with PAS32 Financial instruments: presentation, the increase in
equity in the
will be
a. P360,000
b. P332,000
c. P320,000
d. P311,000
Step by step
Solved in 2 steps with 1 images
- The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty identified the following costs in relation to the share issue:• Professional fees of P40,000.• Internal management time in managing the process of P30,000. These costs are deductible in arriving at the entity's income tax liability. The current rate of tax is 30%. In accordance with PAS32 Financial instruments: presentation, the increase in equity in the statement of financial position of Resty as a result of the transaction will beA. P332,000 B. P320.000 C. P360,000 D. P311,000Assume the following independent cases:A. At the beginning of the year, a check was issued for P400,000 as payment for a piece of land, and the buyer assumed the liability for the unpaid taxes at the end of the year, P10,000 and those assessed for the current year at P9,000.B. A company issued 14,000 ordinary shares (P10 par) with a market value of P60 per share (based upon a recent sale of 100 shares) for the land. The land was recently appraised at P800,000 by independent and competent appraisers.C. A company rejected an offer to purchase the land for P8,000,000 cash two years ago. Instead, the company issued 100,000 ordinary shares for the land (market value of the ordinary share, P78 each based on several recent large transactions and normal weekly stock trading volume).D. A company purchased land by signing a note with the seller, requiring P100,000 down payment, payment of P120,000 one year from purchase, and P80,000 three years from purchase. The note is non-interest bearing,…Assume the following independent cases: (a) At the beginning of the year, a check was issued for P400,000 as payment for a piece of land and the buyer assumed the liability for unpaid taxes in arrears for the previous year, P10,000 and those assessed for the current year, P9,000.(b) A company issued 14,000 ordinary shares (P50 par) with a market value of P60 per share (based upon a recent sale of 100 shares) for the land. The land was recently appraised at P800,000 by independent and professional appraisers.(c) A company rejected an offer to purchase the land for P8,000,000 cash two years ago. Instead, the company issued 100,000 ordinary shares for the land (market value of the ordinary share, P78 each based on several recent large transactions and normal weekly stock trading volume).How much is the cost of land acquired in (a), (b), and (c), respectively? a. 419,000; 800,000; 7,800,000 b. 410,000; 800,000; 7,800,000 c. 410,000; 840,000; 7,800,000 d. 419,000; 840,000;…
- 13. The Resty Company issued 200,000 new P1 ordinary shares at a fair value of P1.80 each. Resty identified the following costs in relation to the share issue: Professional fees of P40,000. Internal management time in managing the process of P30,000. These costs are deductible in arriving at the entity's income tax liability. The current rate of tax is 30%. In accordance with PAS32 Financial instruments: presentation, the increase in equity in the statement of financial position of Resty as a result of the transaction will be Group of answer choices P332,000 P311,000 P360,000 P320,000Taballa Ltd owns all the share capital of Amaroo Ltd. The income tax rate is 30%. The following transactions took place during the periods ended 30 June 2023 or 30 June 2024. (a) On 1 May 2023, Amaroo Ltd sold inventories costing $600 to Taballa Ltd for $1 200 on credit. On 30 June 2023, only half of these goods had been sold by Taballa Ltd, and Taballa Ltd had paid $600 to Amaroo Ltd. All remaining inventories were sold to external entities by 30 June 2024 and Taballa Ltd paid the outstanding amount to Amaroo Ltd on 5 May 2024. (b) On 1 January 2023, Taballa Ltd sold an item of plant to Amaroo Ltd for $10 000. Immediately before the sale, Taballa Ltd had the item of plant on its accounts for $ 12 000. Taballa Ltd depreciated items at 5% p. a. on the diminishing balance and Amaroo Ltd used the straight-line method over 10 years. (c) An inventories item with a cost of $4 000 was sold by Taballa Ltd to Amaroo Ltd for $3 600 on 1 January 2024. Amaroo Ltd intended to use this item as…On 1 January 2020, Investor Ltd paid $1,100,000 for a 25% interest in Associate Ltd when the equity of Associate Ltd consisted of $3,000,000 share capital and $1,200,000 retained earnings. There has been no change in share capital of Associate Ltd since then. Both firms' accounting period is from 1 January to 31 December and their income tax rate is 30%. On this date, all the identifiable net assets of Associate Ltd were recorded at fair value except for the following: Fair value Carrying amount Status Inventory $ 400,000 $ 600,000 Sold in 2020 Machinery (net) 900,000 500,000 5-year life Equipment (net) 70,000 150,000 4-year life Additional information: Associate Ltd has no dividend declared or paid during 2020. Associate Ltd's financial statements show that retained earnings were $1,500,000 as at 1 January 2021, and profit and dividend were $190,000 and $10,000, respectively, for 2021. On 15 November 2021, Associate Ltd sold inventory to Investor Ltd at a profit before income tax…
- On 1 January 2020, Investor Ltd paid $1,100,000 for a 25% interest in Associate Ltd when the equity of Associate Ltd consisted of $3,000,000 share capital and $1,200,000 retained earnings. There has been no change in share capital of Associate Ltd since then. Both firms' accounting period is from 1 January to 31 December and their income tax rate is 30%. On this date, all the identifiable net assets of Associate Ltd were recorded at fair value except for the following: Fair value Carrying amount Status Inventory $ 400,000 $ 600,000 Sold in 2020 Machinery (net) 900,000 500,000 5-year life Equipment (net) 70,000 150,000 4-year life Additional information: Associate Ltd has no dividend declared or paid during 2020. Associate Ltd's financial statements show that retained earnings were $1,500,000 as at 1 January 2021, and profit and dividend were $190,000 and $10,000, respectively, for 2021. On 15 November 2021, Associate Ltd sold inventory to Investor Ltd at a profit before income tax…The accountant for Indra Ltd (Indra) has determined the following information for the year ended 30 June 2020. Profit or loss P300,000 Share of total comprehensive income(after tax) of associates 20,000 Share of profit (after tax) of associates 15,000 Exchange difference gain (net of tax of P3,000) on translation of foreign operation up to the date sold (1 March 2020) 7,000 Exchange difference gain (net of tax of P9,000) on disposal of foreign operation recognized in profit for the year 21,000 Increase in asset revaluation surplus(net of tax) 45,000 What is the total amount of other comprehensive income for Indra for the year ended 30 June 2020?On January 1, 20x1, ABC Co. purchased 1,000 shares of XYZ, Inc. for ₱250,000. Commission paid to brokeramounted to ₱10,000. The equity securities were designated by management to be measured at fair valuethrough profit or loss. On December 31, 20x1, the shares are quoted at ₱200 per share. It was estimated thatthe transaction cost of ₱20 per share will be incurred if the shares were sold on that date. 1. How much is the unrealized gain (loss) on change in fair value recognized in the 20x1 profit or loss?2. On January 3, 20x2, all the shares were sold at ₱300 per share. Commission paid for the sale amountedto ₱60,000. How much is the realized gain (loss) from the sale?3. If ABC Co. uses an allowance account to account for changes in fair values, how much is the balance ofthis account on December 31, 20x1?
- The accountant for Indra Ltd (Indra) has determined the following information for the year ended 30 June 2020. Profit or loss P300,000 Share of total comprehensive income(after tax) of associates 20,000 Share of profit (after tax) of associates 15,000 Exchange difference gain (net of tax of P3,000) on translation of foreign operation up to the date sold (1 March 2020) 7,000 Exchange difference gain (net of tax of P9,000) on disposal of foreign operation recognized in profit for the year 21,000 Increase in asset revaluation surplus(net of tax) 45,000 What is the total amount of other comprehensive income for Indra for the year ended 30 June 2020? a. 72,000 b. 36,000 c. 51,000 d. 57,0004.Assume the following independent cases: (a) At the beginning of the year, a check was issued for P400,000 as payment for a piece of land and the buyer assumed the liability for unpaid taxes in arrears for the previous year, P10,000 and those assessed for the current year, P9,000.(b) A company issued 14,000 ordinary shares (P50 par) with a market value of P60 per share (based upon a recent sale of 100 shares) for the land. The land was recently appraised at P800,000 by independent and professional appraisers.(c) A company rejected an offer to purchase the land for P8,000,000 cash two years ago. Instead, the company issued 100,000 ordinary shares for the land (market value of the ordinary share, P78 each based on several recent large transactions and normal weekly stock trading volume).How much is the cost of land acquired in (a), (b), and (c), respectively? a. 419,000; 800,000; 7,800,000 b. 410,000; 800,000; 7,800,000 c. 410,000; 840,000; 7,800,000 d. 419,000; 840,000;…Entity A has 200,000 ordinary shares outstanding on January 1, 20x1. Entity A offers rights issue to its existing shareholders that enable them to acquire 1 ordinary share at a subscription price of P120 for every 5 rights held. The rights are exercised on May 1, 20x1. The market price of one ordinary share immediately before exercise is P180. Entity A reported profit after tax of P2,700,000 in 20x1. What is the basic earnings per share in 20x1? * O 12.58 O 12.67 O 11.71 O 11.67