FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Please help me journalize the following equity transactions The following equity transactions took place during January 2021.
Jan 2.)Re-issued 500 Preference Treasury Shares at P125 per share.
Jan 3.)Received subscription to 2,000 ordinary shares at P60 per share, with 50% down payment, balance due on 30 Jan 2021.
Jan 5.)Collected in full the account of preference subscribers, except for the balance of 700 shares of Jay Cruz amounting to P40,000. Issued corresponding stock certificates to fully paid subscribers.
Jan 10.) Re-issued the remaining 500 Preference Treasury Shares at P110 per share.
Jan 15.)Declared the subscription of Jay Cruz as delinquent; paid P2,000 for the online advertisement of the auction of the shares.
Jan 17.)Collected in full the balance on 5,000 subscribed ordinary shares; issued the corresponding stock certitificates.
Jan 20.)Re-acquired 1,200
Jan 25.)Received bids for the delinquent subscription of Jay Cruz as follows: Pepe Castro, 500 shares Pilar Cinco, 420 shares Pete Co, 400 shares. The highest bidder paid the "offer price" including P200 interest on overdue subscription of Jay Cruz, corresponding stock certificates were issued.
Jan 27.)Re-issued 500 Preference Treasury shares at P110.
Jan 30.)Re-acquired and retired 300 ordinary shares at P125 per share.
Please help me understand on how to get the answer of January 5
Transcribed Image Text:BM KID Corpotation
Shareholders' Equity
January 1, 2021
(In Philippine Peso)
Pain-in Capital
10% Preference Share Capital, 20,000 authorized, 15,000 shares issued of which 1,000 shares are in Treasury
1,500,000
Subscribed Preference Share Capital, 2,000 Shares
Subscription Receivable - Preference Shares
200,000
100,000
100,000
Ordinary Share Capital, 50,000 shares authorized, no par value but with P50 stated value, 30,000 shares issued
1,500,000
250,000
Subscribed Ordinary Shares, 5000 shares
Subscription Receivable - Ordinary Shares
Additional Paid-in Capital
100,000
150,000
Preference Share Premium
340,000
Paid in Capital in excess of Ordinary Share Stated Value
350,000
Total Paid-in Capital
3,940,000
Accumulated Profits
1,200,000
5,140,000
Total SHE before Treasury Shares
Treasury Shares, 1,000 Preference shares at cost
Total Shareholders' Equity
(115,000)
5,025,000
Transcribed Image Text:ACCOUNT TITLES USED:
Preference Share Capital
Ordinary Share Capital
Subscribed Preference Share Capital
Subscribed Ordinary Share Capital
Subscription Receivable-Preference
Subscription Receivable-Ordinary
Preference Share Premium
Paid in Capital in Excess of Ordinary Share Stated Value
Paid in Capital from Preference Treasury Shares
Paid in Capital from Ordinary Treasury Shares
Ordinary Treasury Shares
Preference Treasury Shares
Accumulated Profits
Due from the Highest Bidder
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