Problem 5.Brian Baluya was a subscriber of Global Appliance Corporation for 300 ordinary shares at P150 par value pershare. He failed to pay his subscription balance of P27,000 which is equivalent to 180 shares despite lawfulcalls and notices being sent to him.The corporation declared all the shares to be delinquent and advertised this to an auction sale. Three (3)bidders were received all in sealed envelopes and signified their intentions to pay the subscription balance ofP27,000 plus advertising expenses of P560 but differ on the share that each bidder wanted to acquire:Melanie Buenzuelan 170 sharesThelma Ciudadano 178 sharesGervacio Piator180 sharesAnswer the following questions:1. How many shares are declared delinquent?2. Who is the highest bidder in the auction sale?3. How much cash that subscriber Brian Baluya has paid to the corporation before the subscriptions becomedelinquent?4. What is the journal entry to record the delinquency sale of Brian Baluya?5. After the auction sale and upon issuance of certificates of shares, how many shares shall be issued to BrianBaluya?6. After the auction sale and upon issuance of certificates of shares, how many shares shall be issued to thehighest bidder?7. How many share certificates shall be issued?

Since multiple subpart questions are asked , we will solve 1st sub 3 parts for you as per prescribed…

Answered: Brian Baluya was a subscriber of Global…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Brian Baluya was a subscriber of Global Appliance Corporation for 300 ordinary shares at P150 par value per share. He failed to pay his subscription balance of P27,000 which is equivalent to 180 shares despite lawful calls and notices being sent to him. The corporation declared all the shares to be delinquent and advertised this to an auction sale. Three (3) bidders were received all in sealed envelopes and signified their intentions to pay the subscription balance of P27,000 plus advertising expenses of P560 but differ on the share that each bidder wanted to acquire: Melanie Buenzuelan 170 shares Thelma Ciudadano 178 shares Gervacio Piator 180 shares Answer the following questions: What is the journal entry to record the delinquency sale of Brian Baluya? After the auction sale and upon issuance of certificates of shares, how many shares shall be issued to Brian Baluya? After the auction sale and upon issuance of certificates of shares, how many shares shall be issued to the highest…
PROBLEM 2: On February 14,2019, Hogwarts Marketing Inc. was authorized to issue 2,000 ordinary shares with a par value of P1,000 share. The next day, the corporation received 600 shares subscriptions from six incorporators as well as 25% paid-up capital. On March 1,2019, the remaining balance was paid in full and share certificates were issued to them. The preceding transactions were properly recorded in the books of the corporation. During the month of March, the foregoing transactions occurred:
Mr. Anton ordered to his stockbroker to buy 1,000 Ayala Land shares at a market price of P36.00/share. His stockbroker executed the order and the transaction was done during the day. How much should Mr. Antonr pay to his broker on settlement date assuming that his stockbroker charge him a commission fee of 1/4 of 1%, and Mr. Anton requested that the shares be registered under his name. a. 36,270.22 b. 36,108.22 c. 36,158.22 d. 36,179.90
X subscribed for 1,000 of P500 par value common stock for P500,000. He was able to pay only P200,000 and so the unpaid subscription was declared delinquent. Accrued interest to date amounted to P21,000 and expenses for the public sale amounted to P4,000. The following bids were offered: A – P325,000 for 800 sharesB – P325,000 for 600 sharesC – P250,000 for 600 sharesD – P200,000 for 400 shares What is the consequence of the sale to the highest bidder? Group of answer choices D shall own 400 shares and X shall retain 600 shares. B shall own 600 shares and the corporation shall own 400 shares. B shall own 600 shares and X shall retain 400 shares. A shall own 800 shares and X shall retain 200 shares.
Smart Corporation owes a trade creditor $ 30,000 on open account which the corporation does not have sufficient cash to pay. The trade creditor suggests that Smart Corporation issue to him 750 shares of the $ 24 par value common stock, which is currently selling on the market at $ 40. Present the entry or entries that should be made on Smart Corporation’s books.
A company invited applications for 1,00,000 shares of 10 each payable 23 on application, *3 on allotment, *2 on first call and 2 on final call. Applications were received for 1,25,000 shares and all were allotted on pro-rata basis. Anandi holding 6.000 shares failed to pay allotment money and her shares were forfeited immediately and half of these shares were re-issued immediately at 36 paid up. Kusum holding 10,000 shares failed to pay the first call money and her shares were immediately forfeited and 5,000 of these shares were re-issued as fully paid up. Final call will be called on how many shares?
(Multiple Choice) Farouk Inc. issues 10 preferred shares in exchange for consulting services valued at $3500. Farouk Inc. does not have shares that are trading on the stock market, and has never issued shares (the shares are all owned by the initial shareholders). In the journal entry to record issuing the shares, Farouk Inc. should 1. More information is required to answer this question 2. Debit Consulting Expense $3500 and Credit Contributed Capital $3500 3. Debit Consulting Expense $3500 and Credit Preferred Shares $3500 4. None of the answers are correct 5. Debit Preferred Shares $3500 and Credit Consulting Expense $3500
A company issued 10000 equity shares of Rs. 100 each. The payment was called upon as under: On Application- Rs. 30; On Allotment - Rs. 30; On I Call - Rs. 20; On II Call - Rs. 20; On Final Call - Rs. 20. X, holder of 1000 shares failed to pay Il and Final Call and his shares were forfeited. Give entry for issue and forfeiture of share. Also give journal entries for forfeiture, if: i. Shares of X are re-issued to Z for Rs. 80 as fully paid-up. ii. Shares of X are re-issued to Z for Rs. 120 as fully paid-up.
or Head is a privately-owned company. On October 1, Gator exchanged 3,000 shares of its private common stock for a building. There is no readily available estimate of the stock's fair value. The building currently is selling for $100,000. The journal entry to record this transaction includes: Question 10 options: Credit: Stock revenue, $100,000. Credit: Cash, $100,000. Debit: Building, $100,000. No entry is recorded for this exchange.
After researching Valero Energy common stock, Sandra Pearson is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 370 shares of Valero Energy. At the time of the sale, a share of common stock has a value of $39. Three months later, Valero Energy is selling for $29 a share, and Sandra instructs her broker to cover her short transaction. Total commission to buy and sell the stock were $82. What is her profit for this short transaction?
[The following information applies to the questions displayed below.] a. On March 22, purchased 700 shares of RPI Company stock at $22 per share. Duke's stock investment results in it having an insignificant influence over RPI. b. On July 1, received a $2 per share cash dividend on the RPI stock purchased in part a. c. On October 8, sold 350 shares of RPI stock for $32 per share. Prepare journal entries to record the given transactions involving the short-term stock investments of Duke Company, all of which occurred during the current year. View transaction list Journal entry worksheet с * 00 8 ( 9
A was not able to fully pay his subscription for 1,000 shares of B Corporation’s stock. Thus, these shares were later sold at a public auction with the following bidders: C: 600 shares, D: 700 shares, and E: 620 shares. Which of the following statements is CORRECT? A will receive share certificate for 1,000 shares. C will receive share certificate for 400 shares. B Corporation will not receive any shares. D will receive share certificate for 700 shares.

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