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  • Assignment 3.1 Additional Equity Transactions

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    JARAH EMILI VILLARUBIA
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    The document records various transactions involving shares including: 1) Initial share subscriptions between May 1 and July 30 for preference and ordinary shares totaling $2,000,000 and $1,600,000 respectively. 2) A transaction on July 1 where ordinary share capital of $1,200,000 was issued along with $360,000 in additional paid-in capital. 3) Treasury share transactions between June 10 and June 20 where shares were purchased and resold for cash, share premium, and adjustments to retained earnings.

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    Equity

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    Assignment 3.1 Additional Equity transactions

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    The document records various transactions involving shares including: 1) Initial share subscriptions between May 1 and July 30 for preference and ordinary shares totaling $2,000,000 and $1,600,000 respectively. 2) A transaction on July 1 where ordinary share capital of $1,200,000 was issued along with $360,000 in additional paid-in capital. 3) Treasury share transactions between June 10 and June 20 where shares were purchased and resold for cash, share premium, and adjustments to retained earnings.

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    © All Rights Reserved
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    10 views5 pages

    Assignment 3.1 Additional Equity Transactions

    Uploaded by

    JARAH EMILI VILLARUBIA
    The document records various transactions involving shares including: 1) Initial share subscriptions between May 1 and July 30 for preference and ordinary shares totaling $2,000,000 and $1,600,000 respectively. 2) A transaction on July 1 where ordinary share capital of $1,200,000 was issued along with $360,000 in additional paid-in capital. 3) Treasury share transactions between June 10 and June 20 where shares were purchased and resold for cash, share premium, and adjustments to retained earnings.

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    of 5

    Problem 1: Additional Transaction

    May 1.

    Cash 1,080,000

    Subscription Receivable 1,120,000


    Preference
    Subscription Receivable 1,400,000
    Ordinary
    Subscribed Share Capital 1,600,000
    Preference
    Subscribed Share Capital 2,000,000
    Ordinary

    June 15.
    Cash 100,000

    Subscription Receivable 400,000


    Share Capital Preference
    Subscribed Share Capital 500,000
    Preference

    June 17.
    Cash 390,000

    Subscription Receivable 1,170,000


    Ordinary
    Subscribed Share Capital 1,560,000
    Ordinary

    June 30.
    Cash 1,260,000

    Subscription Receivable- 560,000


    Share Capital Preference
    Subscription Receivable- 700,000
    Share Capital Ordinary

    July 1.

    Cash 1,170,000

    Subscribed Share Capital 1,560,000


    Ordinary
    Subscription Receivable 1,170,000
    Ordinary
    Share Capital Ordinary 1,200,000

    Additional Paid in Capital 360,000


    Ordinary

    July 15.
    Cash 400,000

    Subscription Receivable- 400,000


    Share Capital Preference

    July 18.
    Land 75,000

    Share Capital Preference 56,000

    Additional Paid in Capital 19,000


    Preference

    July 30.
    Cash 1,260,000

    Subscription Receivable- 560,000


    Share Capital Preference
    Subscription Receivable- 700,000
    Share Capital Ordinary
    Problem 2: Delinquent Shares

    Subscription
    Subscription Receivable 6,400
    Ordinary Share
    Cash 1,600

    Subscribed Share Capital 8,000


    Ordinary

    First Installment
    Cash 2,133.34

    Subscription Receivable- 2,133.34


    Ordinary

    Second Installment
    Cash 2,133.34

    Subscription Receivable- 2,133.34


    Ordinary

    Third Installment
    Due of Highest Bidder 2,133.34

    Subscription Receivable- 2,133.34


    Ordinary- Share

    Payment of Expense
    Due of Highest Bidder 300

    Cash 300
    Payment of Highest Bidder
    Cash 2,658.33

    Due of Highest Bidder 2,433.33

    Interest of Income 225

    Subscribed Share Capital 8,000


    Ordinary
    Share Capital Ordinary 8,000

     Who is the highest bidder? MR. D


     How many shares will A still get? 50%

    Problem 3: Treasury Shares

    June 10.
    Treasury Shares 54,000

    Share Premium from 6,000


    Treasury Shares
    Cash 54,000

    Retained Earnings 6,000

    June 12.

    Cash 3,500

    Retained Earnings 1,000


    Treasury Shares 4,500

    June 15.
    Cash 10,000

    Treasury Shares 9,000

    June 20.
    Cash 9,000

    Share Premium of Treasury 4,500


    Shares
    Treasury Shares 4,500

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