On August 1, 2019, Kobe Corporation received subscription for 7,000 shares of Ordinary Share Capital, P 100 par value, at P 110 per share. Received 10%down payment and the balance payable in 3 equal installments. The entry to record the subscription default assuming 1,500 shares out of the 7,000 shares were unable to pay the last installment will include
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On August 1, 2019, Kobe Corporation received subscription for 7,000 shares of Ordinary Share Capital, P 100 par value, at P 110 per share. Received 10%down payment and the balance payable in 3 equal installments. The entry to record the subscription default assuming 1,500 shares out of the 7,000 shares were unable to pay the last installment will include
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- Disclosure of Debt On May 1, 2019, Ramden Company issues 13% bonds with a face value of 2 million. The bond contract calls for retirement of the bonds in periodic installments of 200,000, starting on May 1, 2020, and continuing on each May 1 thereafter until all bonds are retired. Required: How would the preceding information appear in Ramdens balance sheets on December 31, 2019, and 2020?Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.1. On August 1, 2019, Kobe Corporation received subscription for 7,000 shares of Ordinary Share Capital, P 100 par value, at P 110 per share. Received 10%down payment and the balance payable in 3 equal installments. The entry to record the subscription default assuming 1,500 shares out of the 7,000 shares were unable to pay the last installment will includea. CR. Subscription Receivable for P45,000b. DR. Subscription Receivable for P49,500c. DR. Receivable from Highest Bidder for P49,500d. DR. Receivable from Highest bidder for P45,0002. On January 1, 2020, Addy Company had 110,000 shares issued and 100,000 shares outstanding. The entity had the following transactions in 2020: March 1 - Issued 15,000 shares. June 1 - Resold 2,500 shares of treasury. September 1 Completed a 2-for-1 share split. What is the number of shares issued on December 31, 2020? a. 117,500 b. 230,000 c. 250,000 d. 235,000 3. Mack Company reported the following outstanding share…
- On February 3, 2019, Teel Corporation enters into a subscription contract with several subscribers for 5,000 shares of $10 par common stock at a price of $16 per share. The contract requires a down payment of 25%, with the remaining balance to be paid on May 3, 2019. The stock will be issued to each subscriber upon full payment. Required: Prepare journal entries to record the following: 1. The February 3 receipt of the down payment and signing of the contract. 2. The May 3 receipt of the full remaining balance from subscribers. The market price is currently $17 per share.Shrek Inc., had issued subscriptions for common shares on March 1, 2020. 40% of the subscription was to be paid by the subscribers on April 1 and the balance on June 1. The company would thereafter issue the shares on June 15. On April 1, the company received the funds for the first instalment and prepared the following journal entry to record the transaction: DR Cash $446,400 CR Share Subscription Receivable $446,400 On June 1, 2,000 subscribers failed to pay the second instalment and their subscriptions were forfeited. The company received the funds due on the second instalment from the remaining subscribers and prepared the following journal entry to record the transaction: DR Cash $648,000 CR Share Subscription Receivable $648,000 For how many shares were subscriptions issued by Shrek on March 1, 2020? Select one: a.…On July 1, 2020, an interest payment date, $200,000 of Pride Co. bonds were converted into 12,000 shares of Pride Co.common stock each having a par value of $18 and a market value of $21. There is $10,000 unamortized premium on the bonds. Using the book value method, Pride would record the unamortized premium as: Debit Premium on Bonds Payable $10,000 O Debit Discount on Bonds Payable - $10,000 O Credit Premium on Bonds Payable - $10,000 O Credit Discount on Bonds Payable $10,000 ASA GRLLEE
- On December 29, 2020, the company issued 500,000 4% 5-year bonds for 108. The bonds were issued to offer a 3% yield. The excess of the amount received compared to the present value was due to the conversion feature. Each $100 bond can be converted into 100 common shares. Interest is paid annually. This transaction was NOT recorded in the trial balance. Need Amort schedule, pv, and journal entries:)On Jan. 1, 2021, Gel Co. settled a P 1,000,000 loan by issuing to the lender 10,000 shares with par value of P 50 per share. The shares are selling at 120 per share on Jan. 1, 2021. How much gain/(loss) on extinguishment of debt is to be recognized? *a. P 200,000b. (P 200,000)c. P 500,000d. (P 500,000)To continue in no. 13 (it is in the picture), assume the following transactions took place during 2020: Jan. 10 - One-half of the subscriptions receivable were collected and certificates of stock issued for 1,000 shares. 20 - Remaining subscriptions were declared delinquent and the corresponding chares put up for public auction. Advertising paid, P5,500. 25 - A bidder for 300 shares paid the amount due plus accrued interest of P750 and the corresponding certificates were issued. 31 - A stockholder received 2,000 preferred shares with a market value of P200 Feb. 8 - 300 treasury shares were sold for P45,000 20 - A shareholder paid P70,000 for 500 common shares. 28 - 5,000 preferred shares were redeemed at a price of P120 per share Mar. 1 - 100 treasury shares were sold for P10,000. Direction: 1) Prepare a table tracking down the movement of the stocks, one each for the preferred and common. Start with the December 31 balances. 2) Journal entries 3) Prepare the shareholders' equity…