A32. Transactions of Sheridan Corporation are as follows:1. The company is granted a charter that authorizes the issuance of 150,000 preferred shares and an unlimited number ofcommon shares.2. The founders of the corporation are issued 8,000 common shares for land valued by the board of directors at $232,000(based on an independent valuation).3.Sold 14,500 preferred shares for cash at $110 per share.4.Repurchased and cancelled 2,900 outstanding preferred shares for cash at $100 per share.5. Paid $86,000 in dividends that were declared in the previous period.6.Repurchased for cash and cancelled 550 of the outstanding common shares issued in item 2 above at $46 per share.7. Issued 2,400 preferred shares at $99 per share.Assuming that the company has retained earnings from operations of $1,132,000, prepare the shareholders' equity section of itsSFP after considering all the transactions above.Shareholders' EquityShare CapitalPreferred SharesCommon SharesTotal Share CapitalContributed SurplusTotal Paid-in CapitalRetained EarningsSHERIDAN CORPORATIONStatement of Financial Position (Partial)Total Shareholders' Equity$

The total amount of money that a company's owners have put into the enterprise is referred to as the…

Answered: Transactions of Sheridan Corporation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Madraza Corporation was incorporated on July 1, 20A with authorized ordinary share capita of P1,000,000 and preference share of P2,000,000 with par value of P100 each. During the year, the corporation had the following transactions affecting the Shareholders' Equity: 1st: 120 ordinary shares were issued for cash at par value. 2nd: 380 ordinary shares were issued in exchange for land. The fair market value of land is P50,000. 3rd: 200 ordinary shares were issued in payment of legal expenses incurred during the incorporation process, P25,000. Q-8 How much is the balance of Ordinary Share Capital account? a) P60,000 b) P70,000 c) PS0,000 d) none of these Q-9 What amount of Share Premium should be reported in the Statement of Financial Position? a) P17,000 b) P19,000 c) d) P21,000 none of these
1. The company is granted a charter that authorizes issuance of 15,000 shares of $100 par value preferred stock and 40,000 shares of no-par common stock. 2. 7,500 shares of common stock are issued to the founders of the corporation for land valued by the board of directors at $290,000. The board establishes a stated value of $10 a share for the common stock. 3. 5,800 shares of preferred stock are sold for cash at $110 per share. 4. The company issues 160 shares of common stock to its attorneys for costs associated with starting the company. At that time, the common stock was selling at $65 per share. Prepare the general journal entries necessary to record these transactions.
Lagoon Company was organized at the beginning of the current year.The entity provided the following transactions affecting shareholders' equity:1. The corporation was authorized to issue 100,000 ordinary shares with par value ofP100.2. Twenty-five percent of the authorized ordinary capital was subscribed for at par value.3. Collected twenty-five percent of the subscription.4. Full collection was received on 10,000 shares originally subscribed.5. Issued the share certificates on the fully paid 10,000 shares.6. Land with fair value of P800,000 and a building thereon fairly valued at P2,500,000were acquired for 30,000 shares.7. Issued 10,000 shares for an outstanding bank loan of P1,300,000, including accruedinterest of P200,000. On this date, shares are quoted at P120 per share.8. Net income for the year amounted to P3,000,000.Required:a. Prepare journal entries using journal entry method. b. Present the shareholders' equity
King Corporation began operations in January, year 1. The charter authorized the following share capital: Preferred shares: 7 percent, $25 par value, authorized 49,000 shares. Common shares: no par value, authorized 179,500 shares. During year 1, the following transactions occurred in the order given: a. Sold and issued 24,500 common shares to each of the three organizers. Collected $10 cash per share from two of the organizers, and received a plot of land with a small building on it in full payment for the shares of the third organizer and issued the shares immediately. Assume that 35 percent of the non-cash payment received applies to the building. b. Sold and issued 6,900 preferred shares at $25 per share. Collected the cash and issued the shares immediately. c. Sold and issued 2,900 preferred shares at $25 and 2,900 common shares at $13 per share. Collected the cash and issued the shares immediately. d. The operating results at the end of year 11 were as follows: Revenues Expenses,…
On June 23, 200C, Pinoy Trading owned and operated by Phil was incorporated. On this date, the balance sheet showed the following adjusted balances: Total Assets (including cash of P 30,000) P 200,000Total Liabilities 40,000 The new corporation was authorized to issue 5,000 ordinary shares with a par value of P 100 per share. Phil made a cash subscription of 2,000 shares while the four other incorporators made a cash subscription of 500 shares each. Phil transferred his net assets to the new corporation and paid the balance of his subscription in cash. . Refer to Pinoy Trading, the total shareholders’ equity of the new corporation would be a. 400,000 c. 1,720,000 b. 1,000,000 d. 1,920,000
On June 23, 200C, Pinoy Trading owned and operated by Phil was incorporated. On this date, the balance sheet showed the following adjusted balances: Total Assets (including cash of P 30,000) P 200,000Total Liabilities 40,000 The new corporation was authorized to issue 5,000 ordinary shares with a par value of P 100 per share. Phil made a cash subscription of 2,000 shares while the four other incorporators made a cash subscription of 500 shares each. Phil transferred his net assets to the new corporation and paid the balance of his subscription in cash. How much additional cash investment did Phil make? a. 0 b. 40,000 c. 160,000 d. 200,000
On June 23, 200C, Pinoy Trading owned and operated by Phil was incorporated. On this date, the balance sheet showed the following adjusted balances: Total Assets (including cash of P 30,000) P 200,000Total Liabilities 40,000 The new corporation was authorized to issue 5,000 ordinary shares with a par value of P 100 per share. Phil made a cash subscription of 2,000 shares while the four other incorporators made a cash subscription of 500 shares each. Phil transferred his net assets to the new corporation and paid the balance of his subscription in cash. Refer to Pinoy Trading,The total cash of the new corporation would be: a. 120,000 b. 270,000 c. 920,000 d. 1,120,000
The charter of a corporation provides for the issuance of 105,588 shares of common stock. Assume that 41,103 shares were originally issued and $4,863 were subsequentially reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared?
The Rogers Company is authorized to issue 50 000 ordinary shares of P30 par value. Record the following transactions in Journal entry form. (a) Issued 10 000 shares at par value, received cash. (b) Issued 250 shares to attorney's for services in securing the corporate charter and for preliminary legal costs of organizing the corporation. The value of the services was P 9 000. (c) Received subscriptions for 300 shares at P4O. (d) Collected the above ordinary shares subscriptions and issued stock Certificate. (e) issued 8 500 shares of stock in exchange for buildings valued at P 175 000 and land valued P 80 000 (f) Received cash for 6 500 shares of stock sold at P38 per share. (g) issued 4 000 shares at P45; received cash.
OSE Corporation's articles of incorporation provides for the issuance of 100,000 ordinary shares. During the year, the company originally issued 45,000 shares and subsequently reacquired 5,000 shares. What is the amount of cash dividends to be paid if a P2 per share dividend is declared?
The charter of a corporation provides for the issuance of 95,735 shares of common stock. Assume that 43,241 shares were originally issued and 3,458 were subsequently reacquired. What is the amount of cash dividends to be paid if a $1 per share dividend is declared? Select the correct answer. a-$43,241 b-$95,735 c-$3,458 d-$39,783
Percy Corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During the first month of operation, the corporation issued 250 shares to its attorneys in payment of a $4,500 charge for drawing up the articles of incorporation. The entry to record this transaction would include: Multiple Choice A credit to Paid-in Capital in Excess of Par Value, Common Stock for $4,500. A debit to Organization Expenses for $2,500. A debit to Organization Expenses for $4,500. A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000. A credit to Common Stock for $4,500.

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