Scribd
Upload
201 views2 pages

Mec 12 Assignment On Corporations

The document outlines the financial accounting and reporting assignment for Sousa Caterers, Inc. and Gulane Corporation, detailing share subscriptions and treasury stock transactions. It includes specific journal entries for share subscriptions, treasury stock purchases, and sales, along with calculations for shares issued and outstanding at various dates. The assignment requires students to prepare journal entries and analyze equity transactions for both corporations.

Uploaded by

Khemgee Espedosa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
201 views2 pages

Mec 12 Assignment On Corporations

The document outlines the financial accounting and reporting assignment for Sousa Caterers, Inc. and Gulane Corporation, detailing share subscriptions and treasury stock transactions. It includes specific journal entries for share subscriptions, treasury stock purchases, and sales, along with calculations for shares issued and outstanding at various dates. The assignment requires students to prepare journal entries and analyze equity transactions for both corporations.

Uploaded by

Khemgee Espedosa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

MEC 12 FINANCIAL ACCOUNTING & REPORTING

ASSIGNMENT (ACCOUNTING FOR CORPORATIONS)

SUBSCRIPTION OF SHARES
Sousa Caterers, Inc. was organized on May 13, 2020 and the articles stipulated the following authorized
capital.
a. 4,500 shares of preference shares, PHP110 par value
b. 42,000 shares of ordinary shares, PHP30 par value

Sousa Caterers, Inc. completed the following transactions during its first year of operations:
May 8. Received subscriptions to 14,000 ordinary shares at PHP30 per share; collected 65% of the
subscription price.

05/08 Cash (14,000 x 30 x 65%) 273,000


Subscription Receivable 147,000
Subscribed Ordinary Share Capital (14,000 x 30) 420,000

June 7. Subscribers to 14,000 ordinary shares paid an additional 20% of the subscription price.

06/07 Cash (420,000 x 20%) 84,000


Subscription Receivable 84,000
Subscription Receivable = 147,000 – 84,000 = 63,000

July 6. Subscribers to 14,000 ordinary shares paid an additional 15% of the subscription price. Sousa
Caterers, Inc. issued the 14,000 shares of stock.

07/06 Cash (420,000 x 15%) 63,000


Subscription Receivable 63,000
Subscription Receivable = 63,000 – 63,000 = 0

07/06 Subscribed Ordinary Shares Capital 420,000


Ordinary Share Capital 420,000

September 14. Received subscriptions to 4,300 ordinary shares at PHP32 per share; collected 60% of
the subscription price.

09/14 Cash (4,300 x 32 x 60%) 82,560


Subscription Receivable 55, 040
Subscribed Ordinary Shares Capital (4,300 x 30) 129,000
Share Premium 8,600

Requirement: Prepare the journal entries.


TREASURY STOCK TRANSACTIONS
On January 1, 2020, Gulane Corporation had the following balances in its shareholders’ equity accounts:

Ordinary Shares, PHP5 par PHP500,000


Share Premium-Ordinary 2,000,000
Retained Earnings 7,000,000

On March 28, the corporation purchased 10,000 shares as treasury stock at PHP15 per share. On April
10, it sold 4,000 of the treasury shares at PHP14 per share. On July 5, it sold 2,000 shares at PHP16 per
share.

Requirement:
1. Calculate the number of shares issued and the number of shares outstanding on January 1,
March 31, June 30 and September 30, 2020 assuming no other equity transactions occurred.
2. Prepare the journal entries.

January 1 - 100,000 issued and 100,000 outstanding shares


March 31 - 100,000 issued and 90,000 outstanding shares
June 30 - 100,000 issued and 94,000 outstanding shares
September 30 - 100,000 issued and 96,000 outstanding shares

03/28 Treasury Shares (10,000 x 15) 150,000


Cash 150,000

04/10 Cash 56,000


Share Premium 2,000
Retained Earnings 2,000
Treasury Shares 60,000

07/05 Cash (2,000 x 16) 32,000


Treasury Shares 30,000
Share Premium 2,000

You might also like