Forgiven corporation had 700,000, P10 par value ordinary shares authorized and 300,000 shares outstanding at Jan. 2, 2018. The following events occurred during 2018: Feb. 1 Declared 10% stock dividends. Market price is P15 per share. Mar. 1 Distribute the share dividend declared on Feb 1. July 1 Purchased 100,000 treasury shares for P8 per share. Aug. 1 Reissued 50,000 treasury shares for P12 per share. Sept. 1 Declared a cash dividend of P2 per share. Oct. 1 Pay the cash dividend declared on Sept. 1 Dec. 1 Declared 2 for 1 split Required: a. Prepare the necessary journal entries on the transactions above. b. On Mar. 1, how many shares were outstanding? c. On July 1, after purchase of treasury shares, how many shares were outstanding? d. On Aug. 1, after re-issuance of the 50,000 treasury shares, how many shares were outstanding? e. At Dec. 31, 2018, how many shares of ordinary share capital are outstanding? f. After the share split, how much is the new par value?
5. Forgiven corporation had 700,000, P10 par value ordinary shares authorized and 300,000
shares outstanding at Jan. 2, 2018. The following events occurred during 2018:
Feb. 1 Declared 10% stock dividends. Market price is P15 per share.
Mar. 1 Distribute the share dividend declared on Feb 1.
July 1 Purchased 100,000 treasury shares for P8 per share.
Aug. 1 Reissued 50,000 treasury shares for P12 per share.
Sept. 1 Declared a cash dividend of P2 per share.
Oct. 1 Pay the cash dividend declared on Sept. 1
Dec. 1 Declared 2 for 1 split
Required:
a. Prepare the necessary
b. On Mar. 1, how many shares were outstanding?
c. On July 1, after purchase of treasury shares, how many shares were outstanding?
d. On Aug. 1, after re-issuance of the 50,000 treasury shares, how many shares were
outstanding?
e. At Dec. 31, 2018, how many shares of ordinary share capital are outstanding?
f. After the share split, how much is the new par value?
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