On July 1, 2018, Alaska Corp. issued 6,000 shares of its P 100 par ordinary share to Atty. Black as compensation for 1,000 hours of legal services performed during incorporation. Atty. Black usually bills P 500 per hour for legal services. On this date of issuance, the share was selling at a public trading at P 150 per share. By what amount should the Share Premium account of Alaska Corp. increase as a result of the issuance of those shares?
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- Vishnu Company is authorized to issue 500,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Apr. 10, issued 1,000 shares of stock for legal services valued at $15,000. Journalize the transaction.b) East Company issued 1,000 shares with P5 par to Howe as compensation for 1,000 hours of legal services performed. Howe bills P160 per hour for his legal 1,000 hours of legal services performed. Howe bills P160 per hour for hiei 1or services. By what amount should the share premium accoùnt increase as a resule òf the transaction? c) Faela Corporation has the following share capital balances as of December 31, 2020: 12% Cumulative and participating Preference Share Capital, P20 par P 2,500,000 value Ordinary Share Capital, P10 par value 1,500,000 The last dividend paid was in the year 2017. On December 28, 2020, the corporation declared P2,000,000 cash dividend to be paid on January 15, 2021 to shareholders of record December 31, 2020. How much dividend should be distributed to ordinary and preference shareholders, respectively? How much is the cash dividend per preference and ordinary share?ABC Co. was organized on January 1, 2019, with an authorization of 1.200.000 ordinary shares with a par value of Rp6 per share. During 2019, the corporation had the capital transactions as provided below. ABC Co. used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of share premium as of December 31, 2019?
- On January 1, 2021, KIND Company acquired 5,000 shares of FVOCI securities of OVERFLOW Company at P110,000 plus brokerage expense of P16,000. On February 14, 2021, OVERFLOW Company's ordinary share was split on a 3-for-5 basis. The fair value on December 21, 2021, amounted to P55 per share. a. Compute for the total number of shares at the end of the year. b. Cost per share at Feb 14 c. Compute for the unrealized gain or (loss) to be presented in the other comprehensive income for the current year.In 2021, XYZ Corporation, acquired 3,000 shares of its P20 par value ordinary share capital at P72 per share. During 2021, XYZ issued 1,500 of these shares at P100 per share. What amount should XYZ credit as Additional paid in capital in 2021 to record the issuance of the 1,500 shares?3. Caring Company owned 6,000 shares of equity securities of Amiable Company with carrying amount of P80 per share. On November 15, 2019, Caring Company declares Amiable shares as property dividends to be paid on February 14, 2020. The quoted price for Amiable share is P90 on November 15, 2019, P110 on December 31, 2019 and P100 on February 14, 2020. Required: Compute the following: a.) Dividends payable as of December 31, 2019 b.) Gain on property dividend distribution
- C. On March 1, 2018, Plain, Inc. sold 40,000 shares of its P 30 par value Ordinary Share Capital on a subscription basis at P 50 per share. The corporation received a 30% down payment on the date of subscription. On March 10, 2018, the corporation collected the balance of the subscription and issued the certificates. Required: Prepare the journal entries to record above transactions.On 2, 2019, I AM DETERMINED CO. purchased 10,000 shares of CPA CO. at P56 plus broker’s commission of P4 per share. The investment is FVTOCI. During 2018 and 2020, the following events occurred regarding the investment: 12/15/19 CPA CO. declares and pays a P2.20 per share dividend 12/31/19 The market price of CPA CO. stock is P52 per share at year-end 12/01/20 CPA CO. declares and pays a dividend of P2 per share 12/31/20 The market price of CPA CO. stock is P55 per share at year-end The net unrealized loss at December 31, 2020 in accumulated OCI in shareholders' equity is6. On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per share. Brokerage fees amounted to P120,000. A P5 dividend per share of Byzantine, Inc. shares had been declared on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. The shares are designated as FVTOCI. On December 31, 2020 the investment has a fair value of P4,200,000. How much should be recognized in the 2020 other comprehensive income related to these securities? Group of answer choices P280,000 P200,000 P400,000 P80,000
- Anil Corporation was organized on January 1, 2019. On that date, it issued 500,000, P10 par value, ordinary shares at P15 per share. During the period January 1, 2017 through December 31, 2019, Anil reported profit of P3,000,000 and paid cash dividends of P500,000. On January 5, 2019, Anil purchased 50,000 ordianry sharesat P20 per share. On December 31, 2019, 45,000 treasury shares were sold at P30 per share and retired the remaining treasury shares. 1. Compute for the balance of Share premium – TS on December 31, 2019. 2. Compute for the total shareholders' equity on December 31, 2019.(A) For letters a to d, identify how much to add or deduct from the Investment in Associate account of ABC based on the following transactions or events: a. Dec. 1, 2020 - Bought 3,000 X Corp. shares at P200 per share. The total ordinary shares outstanding of X is 100,000 and each had a par value of P150. b. Jan. 1, 2021 - Bought an additional 15,000 shares of X Corp. for a total price of P3,800,000. The original shares are valued at P250 each. On the same date, ABC started providing essential technical information to X and that both corporations have an interchange of managerial personnel. Significant influence is established. There were no changes in the ordinary shares outstanding. c. Net income reported for the year by the associate was P2,500,000. Adjust net income with data from letter d. d. Dividends declared by X are P2,000,000. It has 90,000 6%, P100-par value preference shares outstanding which are cumulative and participating. No dividends were declared in the previous…MM Co. had 100,000 shares of ordinary share issued and outstanding at January 1, 2021. During 2021, MM took the following actions: March 15-Declared a 2-for-1 stock split, when the fair value of the share was P80 per share December 15-Declared a P.50 per share cash dividend In MM's statement of shareholders' equity for 2021, what amount should MM report asdividend?