X Company made the following transactions: Received subscription of 10,000 preference shares with par value of 45 for 65 per share. Received 25% the next day and 30% after three days. Received subscription of 25,000 ordinary shares with par value of 7.50 for 200,000. received the following payments- 75,000 and 50,000. Required: Compute for the legal capital of each transaction and prepare all journal entries needed to record the transactions above.

Q: Novak Corporation earned $371,000 during a period when it had an average of 100,000 shares of common…

A: Formula: Earnings per share = ( Net income - Total preferred dividends ) / Total outstanding shares

Q: Empresas La Sierra presents the following information: • On January 5, the company issues 25,000…

A: Journal: It refers to an account which shows all the financial transactions pertaining to a…

Q: On September 14, 10,000 shares of Grey Company are acquired at a price of $100 per share plus a $500…

A: Journal is the basic recording book in accounting. It is the primary book of entry for recording…

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: Riverbed Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Journal entries refer to the process of systematic documentation of the financial transactions of a…

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: On March 31, 20x1, Budoy Co. received 10,000 stock rights from its investment in equity securities…

A: Theoretical value of rights=Market price-Subscription priceNumber of rights+1=P 80-P 604+1=P 4

Q: Apple Corporation was authorized to issue 10,000 preference shares of P200 par value and 100,000…

A: Premium amount is the difference between the subscription price and face value If the subscription…

Q: Splish Brothers Inc. purchased from its stockholders 6,000 shares of its own previously issued stock…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: journal entry to record the issuance, how much should be recorded for Paid-in Capital in Excess of…

A: Given in the question:- 500 Common Stock * $10 per share= $5000 200 Preferred Stock * $ 20 per…

Q: Question: Assuming after 60 days, only subscribers at 3,000 preference share paid the balance, the…

A: Amount received at subscription 4000*218*30% = 216,600 Add: amount received after 60 days…

Q: Righty, Inc., entered into a stock subscription contract that called for the purchase by investors…

A: No of shares subscribed = 10,000 shares Par value of common stock = 10,000 x $ 10 = $100,000…

Q: (a) Prepare the journal entry for the issuance assuming the par value of the common stock was $5 and…

A:

Q: When a company issues 36,000 shares of $4 par value common stock for $40 per share, the journal…

A: The journal entry of share issuance requires a debit to cash account and credit to share capital…

Q: Rinehart Corporation purchased from its stockholders 5,300 shares of its own previously issued stock…

A: Purchase price of each share = $275,600/5300                                                = $ 52

Q: Skysong Inc. issues 500 shares of $ 10 par value common stock and 100 shares of $ 100 par value…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On September 12, 2,600 shares of Aspen Company are acquired at a price of $48.00 per share plus a…

A: 1. CALCULATION FOR PURCHASE OF INVESTMENT : = (2,600 X $48) + $130  = $124,930   2. CALCULATION OF…

Q: Bloosom Corporation has issued 2,000 ordinary shares and 400 preference shares for à luE Required:…

A: The different shares issued for lump sum payment are allocated the money on the basis of ratio of…

Q: A company issues 500 shares of $10 par value common stock and 200 shares of $100 par value preferred…

A: The lump-sum amount is allocated to the common stock and preferred stock on the basis of the market…

Q: XYZ Corporation is authorized to issue 150,000 ordinary shares with par of P150. On June 1 eight…

A: Statement of Profit and Loss Account The purpose of preparing the statement of profit and loss to…

Q: Black Diamond Inc. issues 2,500 shares of $1 par valuecommon stock and 1,000 shares of $50 par value…

A: a. Prepare journal entries for issuance of common shares and preferred shares when market value of…

Q: Sunland Company has issued 1,900 shares of common stock and 380 shares of preferred stock for a lump…

A: The stock in which shareholder’s are entitled to received dividend whose amount may vary from time…

Q: Sneed Corporation issues 11,600 shares of $45 par preferred stock for cash at $67 per share. The…

A: Total par value of preferred stock issued = No. of shares issued x par value per share = 11,600…

Q: XYZ Corporation is authorized to issue 150,000 ordinary shares with par of P150. On June 1 eight…

A:

Q: On December 12, ABC Company purchased 1,000 shares of its $2 par value common stock for $27 each. On…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: An entity, Taylor, has issued equity share capital of 250,000 shares with a nominal value of $0.50…

A: We have the following information: Issued capital: 250,000 shares of $0.50 Premium account balance:…

Q: Skysong Inc. issues  500 shares of $ 10 par value common stock and  100 shares of $ 100 par value…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Dave Matthew Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Requirement a:   Pass necessary journal entry to record the issuance of common stock and preferred…

Q: On January 1, Vermont Corporation had 43,000 shares of $9 par value common stock issued and…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: Next Level Morgan Corporation issues 500 “packages” of securities for $180 per package on December…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: Sunland Company has issued 1,900 shares of common stock and 380 shares of preferred stock for a lump…

A: Stocks are issued at fair value. But, they should record as “par value for share capital” and…

Q: WHAT IS THE LEGAL CAPITAL? The Century Philippines Corporation has been authorized to issue 100,000…

A: Legal Capital: It is capital of the shareholder's equity which is not legally allowed to be…

Q: Give the journal entries of the following: Received payments in full for half of the share…

A: The following transactions are journalized as per the information given.

Q: ABC Corporation issues 5,000 ordinary shares with a $50 par value for cash at $55 per share. The…

A: At the time of issue of shares, any amount received over and above par value of shares is known as…

Q: The ABC Corporation received subscription for 9,000 ordinary shares at P40/share, where P35 is the…

A: Here discuss about the details of the details of the receivable from the highest bidder which are…

Q: Ravonette Corporation issued 300 shares of $10 par value ordinary shares and 100 shares of $50 par…

A:

Q: Gotham Inc. issued 10,000 shares of its $2 par value common stock for $25 per share. The journal…

A: Cash (10,000 x $25) 250,000     Common Stock (10,000 x $2)   20,000   Additional Paid-in Capital…

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: Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $2 par…

A: Solution: stockholders’ equity section of incentive corporation is as under:

Q: SHATT ALAREB CO. issues 1000 shares of $5 par value common stock and 500 shares of $50 par value…

A: Journal entry is record of financial transaction in the books of accounts maintained by an…

Q: On January 1, Vermont Corporation had 49,400 shares of $11 par value common stock issued and…

A: On february 1,vermont purchased treasury stock for $ 24 and on march 1 it sold treasury stock for…

Q: Shamrock Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Journal entry: The record of business transactions in a chronological order with equal amounts of…

Q: On January 1, Vermont Corporation had 46,700 shares of $10 par value common stock issued and…

A: A journal entry is used to record a business arrangement in a company's accounting records. A…

Q: BFAR Corp. was formed on June 1 with 100,000 authorized shares having a par value of P20. The…

A: when company issue share capital and shares to the shareholders there received application allotment…

Q: Worldwide Company was authorized to issue 10,000 preference shares of P200 par value and 100,000…

A: Calculation of share premium - Preference: Premium per share: Received       225 Less: Par       200…

Q: Righty, Inc., entered into a stock subscription contract that called for the purchase by investors…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Please give me the journal entries of the following: Received payments in full for half of the…

A: Please check the next step

Q: Taylor Corporation issues 20,000 shares of $50 par value preferred stock for cash at $90 per share.…

A: Issue price of preferred stock=Number of Shares×Issue price=20,000×$90=$1,800,000

Q: Worldwide Company was authorized to issue 10,000 preference shares of $200 par value and 10,000…

A: Answer and calculations are given below

Q: The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $62 per share. The…

A: Cash received = 10,000 shares x $62 = $620,000 Par value per share = $50 Paid in capital in excess…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.