During the current year, the following selected transactions were completed: 1. Sold and issued 18,000 ordinary shares for cash at 90 per share to FAITH. 2. Sold and issued 5,000 preference shares for cash at 108 to FAITH. 3. Issued 2,000 ordinary shares for a piece of land that will be used for plant site. The land has a fair value of $150,000 and the shares are currently selling at #80 per share. 4. Issued 1,000 ordinary shares for services received from stock brokers. Total brokers' fee was $100,000 and the shares of stocks was selling at $75 per share. 5. Received subscriptions of 30,000 ordinary shares at #75; and 10,000 preference shares at $112. 6. Collected 60% of the previous subscriptions. 7. Full collection was made for 25,000 ordinary shares and 9,500 preference shares, thus warranting the issuance of their certificates. 8. The remaining subscriptions for ordinary shares were declared delinquent and incurred related expense amounting to P45,000.
During the current year, the following selected transactions were completed: 1. Sold and issued 18,000 ordinary shares for cash at 90 per share to FAITH. 2. Sold and issued 5,000 preference shares for cash at 108 to FAITH. 3. Issued 2,000 ordinary shares for a piece of land that will be used for plant site. The land has a fair value of $150,000 and the shares are currently selling at #80 per share. 4. Issued 1,000 ordinary shares for services received from stock brokers. Total brokers' fee was $100,000 and the shares of stocks was selling at $75 per share. 5. Received subscriptions of 30,000 ordinary shares at #75; and 10,000 preference shares at $112. 6. Collected 60% of the previous subscriptions. 7. Full collection was made for 25,000 ordinary shares and 9,500 preference shares, thus warranting the issuance of their certificates. 8. The remaining subscriptions for ordinary shares were declared delinquent and incurred related expense amounting to P45,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. What is the number of outstanding
Transcribed Image Text:HOPE Corporation was organized in 2018 to operate a manufacturing business. The
following information were lifted from the records of the company pertaining to
shareholders' equity as of January 1, 2021:
• Ordinary shares, par value P55 per share, 200,000 shares authorized, 80,000 shares
issued
• Preference shares, par value P105 per share, 100,000 shares authorized, 20,000
shares issued
Retained earnings balance as of January 1, 2021 amounts to P4,600,000
During the current year, the following selected transactions were completed:
1. Sold and issued 18,000 ordinary shares for cash at P9o per share to FAITH.
2. Sold and issued 5,000 preference shares for cash at P108 to FAITH.
3. Issued 2,000 ordinary shares for a piece of land that will be used for plant site. The
land has a fair value of P150,000 and the shares are currently selling at P80 per share.
4. Issued 1,000 ordinary shares for services received from stock brokers. Total brokers'
fee was P100,000 and the shares of stocks was selling at P75 per share.
5. Received subscriptions of 30,000 ordinary shares at P75; and 10,000 preference
shares at P112.
6. Collected 60% of the previous subscriptions.
7. Full collection was made for 25,000 ordinary shares and 9,500 preference shares,
thus warranting the issuance of their certificates.
8. The remaining subscriptions for ordinary shares were declared delinquent and
incurred related expense amounting to P45,000.
9. Issued delinquent shares after the payment made by the highest bidder for 4,200
shares.
10. Reacquired from FAITH 4,000 ordinary shares at P58 and 1,000 preference shares at
P111.
11. Sold 1,500 ordinary treasury shares at P60, and 500 preference shares at cost.
12. Retired remaining preference treasury shares.
13. Appropriation for treasury shares was made
14. Declared and paid cash dividends amounting to P870,000
15. Net income for the year amounted to P965,000
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