On December 1, 2019, Bobcat Corporation received a donation of 2,000 shares with P 50 par value from a shareholder. On that date, the share market value was P 350. The shares were originally issued for P 250 per share. By what amount would this donation cause shareholder’s equity to decrease?

On December 1, 2019, Bobcat Corporation received a donation of 2,000 shares with P 50 par value from a shareholder. On that date, the share market value was P 350. The shares were originally issued for P 250 per share. By what amount would this donation cause shareholder’s equity to decrease?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Iron King Corporation had the following transactions during 2019: Jan. 1. Issued 6,000 ordinary shares at par of P100 in exchange for real property with a market value of P800,000. The corporation is authorized to issue 20,000 shares. Jan 15. Sold 8,000 shares at P120 Mar. 10. Purchased 800 of its shares at P150. June 12. Sold 400 treasury shares. Dec. 31 Profit for the year is P316,000. 1. Compute for the total ordinary share capital as of December 31, 2019. 2. Compute for the retained earnings as of December 31, 2019.
Fill in the blanks: Princess Corp. purchased 100,000 ordinary shares at P80 per share on January 1, 2020. These shares are classified as FA at FVOCI. The entity received100,000 share rights on August 30, 2020 which can be used to purchase 20,000 shares at P90 per share. The shares will expire on January 1, 2021. 1) What amount should be reported on August 30, 2020 as investment in share rights? | 2) What is the total cost of the new investment if all of the share rights were exercised? ( Previous Continue >
On March 1, 2020, Seokjin Corporation received subscription for 1,600 Preference Shares with P 300 par value at P 308 per share. During the month, the corporation issued 2,100 Preference shares at P 330 per share. The corporation also received subscription for 1,000 Preference shares at par and then collected the full payment from half of these subscribers after a week of the same month. If the corporation was authorized to issue 7,000 shares, how many shares are still available for subscription?
On August 15, 2021, EasyMoney, Inc.'s Board of Directors meets and declares that EasyMoney will pay a dividend to its stockholders. Each share of EasyMoney's Common Stock will be paid a dividend of $1.25 per share. There are currently 100,000 shares of EasyMoney's Common Stock held by EasyMoney's shareholders. The following are the facts related to this dividend: D Dividend per Share D Date of Declaration D Date of Record D Date of Payment $1.25 August 15, 2021 September 5, 2021 September 20, 2021 The following is a partial list of the accounts in EasyMoney, Inc.'s General Ledger. These are the only accounts you need for this problem. D Cash D Dividends Payable > Retained Earnings As of August 1, 2021, the Beginning Balance in the Dividends Payable account is $0 and the Beginning Balance in the Retained Earnings account is $625,000.
1) How much is the Ordinary Share Capital at year end? 2) How much is the Preference Share Capital at year end? 3) How much is the TOTAL subscribed share capital (assuming subscriptions receivable is collectible on January 5, 2022)?
On December 31, 2019, Kier Corporation purchased 30,000 shares of Lord Company's shares at P100 each. On December 31, 2019, Lord Company's shares are selling at P125 per share. On February 1, 2020, Kier received 30,000 rights entitling it to purchase at P130 per share one additional share of Lord for each 10 shares then held. On that date, Lord's shares were selling ex-rights at P145 and the rights were selling at P5.00. If the securities were classified by Kier as Trading Securities at the time of acquisition and assuming the entire share rights were sold at their prevailing market price of P5.00, what amount of gain on sale of share rights should Kier Corporation recognize?
Opus Corp has decided to issue equity in order to raise capital to expand operations. The company has received approval from the board of directors to issue 100,000 shares of the company’s common stock on May 1, 2020. On the date of issue, the common stock has a par value of $0.25 and a market value of $5. What amount will Opus Corp record as Common Stock on May 1, 2020?
On July 1, 2020. Rhod Corporation issued 1,000 P15 par ordinary shares at P19 and 2,000 P50 par redeemable preference shares at P60. Question: What is the amount debited to Cash?
On July 1, 2020, Phoenix company offers to issue their accountant 800 common shares at their current market value of $12 per share, to equal the fair value of $9,600. The accountant accepts the offer of shares in exchange for accounting services. Record the journal entry for the issuance of shares. Select one: a. Debit Cash $9,600, Credit Common Shares $9,600 b. Debit Accounting Fees Expense $9,600, Credit Cash $9,600 c. Debit Accounting Fees Expense $9,600, Credit Common Shares $9,600 d. Debit Cash $9,600, Credit Service Revenue $9,600
ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC distributes, to its shareholders, the shares of XYZ in the form of a dividend. This dividend must be recorded in ABC's books for: a. the market value of XYZ stock. b. the market value of ABC shares. c. the book value of XYZ stock.
CFAS Company received a donation of 2,000 shares of its P5 par value ordinary shares from a shareholder. On that date, the share's fair value was P35 per share. The share was originallyissued for P25 per share. By what amount would this donation cause total sharcholders equity to change? (Usc negative sign to indicate a decrease)
ABC Corporation has an investment of 4,000,000 shares in XYZ Corporation. On December 31, 2021, ABC distributes, to its shareholders, the shares of XYZ in the form of a dividend. This distribution is an example of a dividend: a. in stock (stock dividend). b. owned (property dividend). c. in liquidation (liquidating dividend).