1) Prepare a table tracking down the movement of the stocks, one each for the preferred and common. Start with the December 31 balances. 2) Journal entries
1) Prepare a table tracking down the movement of the stocks, one each for the preferred and common. Start with the December 31 balances. 2) Journal entries
1) Prepare a table tracking down the movement of the stocks, one each for the preferred and common. Start with the December 31 balances. 2) Journal entries
To continue in no. 13 (it is in the picture), assume the following transactions took place during 2020:
Jan. 10 - One-half of the subscriptions receivable were collected and certificates of stock issued for 1,000 shares.
20 Remaining subscriptions were declared delinquent and the corresponding chares put up for public auction. Advertising paid, P5,500. 25 A bidder for 300 shares paid the amount due plus accrued interest of P750 and the corresponding certificates were issued.
31 A stockholder received 2,000 preferred shares with a market value of P200 201
Feb. 8 - 300 treasury shares were sold for P45,000
20 - A shareholder paid P70,000 for 500 common shares.
28 - 5,000 preferred shares were redeemed at a price of P120 per share
Mar. 1 - 100 treasury shares were sold for P10,000.
Direction:
1) Prepare a table tracking down the movement of the stocks, one each for the preferred and common. Start with the December 31 balances.
2) Journal entries
3) Prepare the shareholders' equity section as of March 31, 2016.
4) For each class of stock, answer the same requirements as in Exercise 13.
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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