Prepare the journal entries to record these transactions

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Reference no: EM132935197

Question 1. B. Sorima Corporation began operations on January 1, 2020. The following transactions relating to shareholders' equity occurred m the first two years of the corporation's operations

2020

Jan 1 Authorized the issuance of 2 million shares of P5 par value ordinar shares and 100,000 shares of P100 par value, 10% cumulative preference shares.
2 Issused 200,00 ordinary shares for P 12 cash per share.

3. Issused 100,00 ordinary shares in exchange for a building valued at P820,000 and merchandise inventory valued at P 380,000

4. Paid P10,000 cash to the corporation founders for organization activities.
5. Issued 12,000 preference shares for P110 cash per share.

2021
June 4 Issued 10,000 ordinary shares br P15 cash per share.
14. Issued 20,500 preference shares for P120 cash per share.

Required:
a. Prepare the journal entries to record these transactions.

b. Prepare the share capital section of the shareholders equity as at December 31, 2020 and December 31, 2021.

Question 2. The shartholder's equity section of Nazario Freight Ewes, Inc. as at December 31, 2020 appeared as follows

6% Preference Shares, P75 Par, 200,000 shares authorized 700,000 shares issu.
Ordinary Shares, P5 stated value, 500,000 shares authorized shares issued and shares
outstanding 500.000
Share Premium - Ordinary 600.000
Retained E arnings 1.000,000
Total Share Capital and Retained E amings
Less: Treasurry Stock - Ordinary, 10,000 shares, at cost 40.000
Total Stockholders' Equity P

Required: PMVide the answers to each of the following questions:
a. What is the total issue price of the preference shares?

b. How many ordinary shares were issued?

c. How many ordinary shares are outstanding?

d. What was the total issue price of the ordinary shares?

e. What is the total legal capital of the corporation?

f. What is the total contributed capital of the corporation?

g What is the total shareholders' equity?

h. For how much per share was the treasury stock purchase?

i. What is the amount of the required preference dividends?

Attachment:- question.rar

Reference no: EM132935197

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