Assignment 10: Akawnting

Retained Earnings

Problem # 1.

 Lam-ang's board of directors declared a P 710,000 cash dividend on October 5, 2015.  The board decided to include all shareholders as of November 5, 2015, beyond the date would no longer entitle the shareholder to receive any dividend declared on October 5, 2015.  On December 20, 2015, the shareholders received their share of the profit.

Required:

Prepare the necessary journal entries to record the above transactions.

Assignment 9: Akawnting

Shareholders' Equity Section

The shareholders' equity of Moonlight Corporation at January 2, 2015, appeared below:

 8% Preference Shares, P 150 par, 100,000 shares authorized, 20,000 shares issued and outstanding P 3,000,000

Ordinary shares, P 100 par, 200,000 shares authorized, 50,000 shares issued and outstanding P 5,000,000

Share premium - preference P 300,000

Share Premium - Ordinary P 200,000

Retained Earnings P 1,500,000

During 2015 the following transactions occurred:

• Jan 5, issued 6,500 ordinary shares in exchange for a piece of land .  The land had a cost of P 500,000.  There was no available fair value of shares stock.
• Feb 10, purchased 6,000 ordinary shares for the treasury at P 90 per share.
• Feb 15 shareholders donated P 10,000 cash
• May 7, issued 10,000 preference shares for P 160 per share
• June 29, received subscription to 10,000 ordinary shares at P 120
• Aug 17, received donation from ordinary shareholders, 2,000 ordinary shares
• Sept 11, received full amount from subscribers and issued the shares
• Oct 20,  sold 3,000 treasury shares at P 160 per share
• Nov 22, retired 2,000 treasury shares.
• Dec 31, Closed profit of P 450,000

Required:

1. Prepare journal entries to record transactions (to be posted online)
2. Prepare the December 31, 2015 Shareholders' equity section (yellow paper)

Note: To be submitted on or before March 8, 2015  (8 pm)

Assignment 8: Akawnting

Treasury Shares

On January 1, 2015 Malcolm Corporation had the following balances in its shareholders' equity section:

Ordinary shares, P 20 par                       P 600,000

Share Premium - Ordinary                      1,400,000

Retained Earnings                                   2,000,000

On April 13, 2015 the corporation purchased 5,000 shares from its own ordinary shares at P 18 per share.  On May 5, 2015 it sold 3,000 shares of the treasury shares at P P 22 per share.  On July 20, 2015, it sold 2,000 shares at P 17.50 per share.

Required:

1. Prepare the Entries to record treasury transactions
2. Prepare the Stockholders' Equity Section as of April 13, 2015 after the purchase of treasury shares. 

Assignment 7: Akawnting

Subscription of Shares

The Akawnting Corporation has been authorized to issue 127,000 shares of P 7 par ordinary shares.  The following 2015 transactions relate to the initial issuance of shares.

• June 1, Akawnting sold subscriptions for 35,000 shares for P 12 per share.  The subscribers made down-payments  amounting to 25% of the subscription price.
• June 7, the corporation issued 15,000 shares for P 160,000
• July 10, Akawnting exchanged 1,000 shares for a computer costing P 15,000 but with fair value of P 12,000.
• August 1, an installment amounting to 40% of the subscription price was received.
• September 1, the final installment was received and the shares were issued. 

Required:

1. Prepare the journal entries to record the above transactions
2. How would you present in the Balance Sheet the Subscription Receivable account? (Write your answer in two - three sentences.)