Jamaica Corp. organized on June 1,2020, was authorized to issue shares as follows:   9%, 800,000, P100 par, convertible preference shares 2,000,000, P2.50 par value, ordinary shares During the remainder of the fiscal year ended May 31,2021, the following transactions were completed in the order given: 240,000 preference shares were subscribed for at P105, and 720,000 ordinary shares were subscribed for at P26. Both subscriptions were payable 30% upon subscription, the balance in one payment. The second subscription payment was received, except one subscriber for 48,000 ordinary shares defaulted on payment. The full amount paid by this subscriber was returned, and all of the fully paid shares was issued. 120,000 ordinary shares were reacquired by purchase at P28. Each preference share was converted into four ordinary shares. The treasury shares were exchanged for machinery with a fair value market value of P3,440,000. There was a 2 for 1 split and the par value of the new ordinary shares is P1.25. Profit was P664,000. Assume the revenue and expenses have been closed to a temporary account. Income Summary What are the journal entries of the above transactions? Prepare the stockholders equity for 2021

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
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Problem 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...
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Jamaica Corp. organized on June 1,2020, was authorized to issue shares as follows:

 

  • 9%, 800,000, P100 par, convertible preference shares
  • 2,000,000, P2.50 par value, ordinary shares

During the remainder of the fiscal year ended May 31,2021, the following transactions were completed in the order given:

  1. 240,000 preference shares were subscribed for at P105, and 720,000 ordinary shares were subscribed for at P26. Both subscriptions were payable 30% upon subscription, the balance in one payment.
  2. The second subscription payment was received, except one subscriber for 48,000 ordinary shares defaulted on payment. The full amount paid by this subscriber was returned, and all of the fully paid shares was issued.
  3. 120,000 ordinary shares were reacquired by purchase at P28.
  4. Each preference share was converted into four ordinary shares.
  5. The treasury shares were exchanged for machinery with a fair value market value of P3,440,000.
  6. There was a 2 for 1 split and the par value of the new ordinary shares is P1.25.
  7. Profit was P664,000. Assume the revenue and expenses have been closed to a temporary account. Income Summary

What are the journal entries of the above transactions?

Prepare the stockholders equity for 2021

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