Villarama Corp was organized on Jan 1, 2019. It is authorized to issue 20,000 shares of...

Villarama Corp was organized on Jan 1, 2019. It is authorized to issue 20,000 shares of 6% P50 par value preference shares and 50,000 shares of no-par ordinary shares with a stated value of P10 per share. The following stock transactions were completed during the year.

Jan 10 issued 10,000 ordinary shares for cash at P35 per share

Mar 1 Issued 10,000 preference shares for cash at P55 per share

Apr 1 issued 2,500 ordinary shares for land. The asking price of the land was P90,000, the FMV of the land was P85,000

May 1 Issued 7,500 ordinary shares for cash at P40 per share

Aug 1 issued 1,000 ordinary shares to lawyers in payment of their bill for P50,000 pertaining to services rendered in helping the corporation organize

Sep 1 issued 500 ordinary shares for cash at P60 per share

Nov 1 issued 2,000 preference shares for cash at P53 per share

Required:

Journalize the transactions.
Post to the shareholders' equity accounts
Prepare the share capital section of the shareholders' equity as at Dec 31, 2019.

Expert Solution

Jan. 10	Cash ( 10000 * 35 )	350000
	Common stock ( 10000 * 10 )		100000
	Additional PIC In excess of stated value		250000

1-Mar	Cash ( 10000 * 55 )	550000
	preference stock ( 10000 * 50 )		500000
	Additional PIC In excess of par value		50000

April 1-	Land	90000
	Common stock ( 2500 * 10 )		25000
	Additional PIC In excess of stated value		65000

1-May	Cash ( 7500*40)	300000
	Common stock ( 7500 * 10 )		75000
	Additional PIC In excess of stated value		225000

1-Aug	Organisation expenses	50000
	Common stock ( 1000 * 10 )		10000
	Additional PIC In excess of stated value		40000

1-Sep	Cash ( 500 * 60)	30000
	Common stock ( 500* 10 )		5000
	Additional PIC In excess of stated value		25000

1-Nov	Cash ( 2000 * 53)	106000
	preference stock ( 2000* 50 )		100000
	Additional PIC In excess of par value		6000

Common stock
Cl. Bal.	190000	Cash	100000
		Land	75000
		Organisation expenses	10000
		Cash	5000
	190000		190000

Preferred stock
Cl. Bal.	600000	Cash	500000
		Cash	100000
	600000		600000

Additional PIC In excess of stated value
Cl. Bal.	380000	Cash	250000
		Land	65000
		Organisation expenses	40000
		Cash	25000
	380000		380000

Additional PIC In excess of par value
Cl. Bal.	56000	Cash	50000
		Cash	6000
	56000		56000

Shareholder equity section
Common stock	190000
preference stock	600000
Additional PIC In excess of stated value	380000
Additional PIC In excess of par value	56000
	1226000

ekkarill92 answered 1 year ago

Bramble Corp. was organized on January 1, 2019. It is authorized to issue 13,000 shares of...

Bramble Corp. was organized on January 1, 2019. It is authorized to issue 13,000 shares of 8%, $100 par value preferred stock, and 526,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year: Jan. 10 Issued 84,500 shares of common stock for cash at $6 per share. Mar. 1 Issued 5,150 shares of preferred stock for cash at $105 per share. Apr. 1 Issued 24,000 shares...

PUKALANI Corporation was organized on January 1, 2018. It is authorized to issue 20,000 shares of...

PUKALANI Corporation was organized on January 1, 2018. It is authorized to issue 20,000 shares of $3-noncumulative preferred shares and an unlimited number of common shares. The following share transactions were completed during the first year. Jan. 1 Issued 77,000 common shares for cash at $3 per share. Mar. 1 Issued 12,400 preferred shares for cash at $56 per share. May 1 Issued 123,000 common shares for cash at $5 per share. Sept. 1 Issued 4,500 common shares for cash...

Mendoza Corporation was organized on January 1, 2017. It is authorized to issue 20,000 shares of...

Mendoza Corporation was organized on January 1, 2017. It is authorized to issue 20,000 shares of 6%, $40 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the fi rst year. Jan. 10 Issued 100,000 shares of common stock for cash at $3 per share. Mar. 1 Issued 10,000 shares of preferred stock for cash at $55 per share. Apr. 1 Issued 25,000...

Grouper Corp. was organized on January 1, 2022. It is authorized to issue 22,000 shares of...

Grouper Corp. was organized on January 1, 2022. It is authorized to issue 22,000 shares of 6%, $53 par value preferred stock and 456,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 68,000 shares of common stock for cash at $6 per share. Mar. 1 Issued 1,160 shares of preferred stock for cash at $56 per share. May 1 Issued 113,000 shares...

Marigold Corp. was organized on January 1, 2017. It is authorized to issue 22,500 shares of...

Marigold Corp. was organized on January 1, 2017. It is authorized to issue 22,500 shares of 7%, $51 par value preferred stock and 457,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 68,500 shares of common stock for cash at $5 per share. Mar. 1 Issued 1,170 shares of preferred stock for cash at $54 per share. May 1 Issued 113,500 shares...

Monty Corp. was organized on January 1, 2017. It is authorized to issue 23,500 shares of...

Monty Corp. was organized on January 1, 2017. It is authorized to issue 23,500 shares of 6%, $53 par value preferred stock and 459,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 69,500 shares of common stock for cash at $4 per share. Mar. 1 Issued 1,190 shares of preferred stock for cash at $54 per share. May 1 Issued 114,500 shares...

Ayayai Corp. was organized on January 1, 2022. It is authorized to issue 19,000 shares of...

Ayayai Corp. was organized on January 1, 2022. It is authorized to issue 19,000 shares of 5%, $50 par value preferred stock and 450,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 65,000 shares of common stock for cash at $4 per share. Mar. 1 Issued 1,100 shares of preferred stock for cash at $54 per share. May 1 Issued 110,000 shares...

Pronghorn Corp. was organized on January 1, 2022. It is authorized to issue 19,800 shares of...

Pronghorn Corp. was organized on January 1, 2022. It is authorized to issue 19,800 shares of 7%, $50 par value preferred stock and 462,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 71,000 shares of common stock for cash at $5 per share. Mar. 1 Issued 1,220 shares of preferred stock for cash at $56 per share. May 1 Issued 116,000 shares...

DeLong Corporation was organized on January 1, 2019. It is authorized to issue 10,000 shares...

P11-1A DeLong Corporation was organized on January 1, 2019. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 80,000 shares of common stock for cash at $4 per share. Mar. 1 Issued 5,000 shares of preferred stock for cash at $105 per share. Apr. 1 Issued 24,000 shares of common...

Concord Corporation was organized on January 1, 2019. It is authorized to issue 15,000 shares of...

Concord Corporation was organized on January 1, 2019. It is authorized to issue 15,000 shares of 8%, $100 par value preferred stock, and 504,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year: JOURNALIZE Jan. 10 Issued 85,000 shares of common stock for cash at $4 per share. Mar. 1 Issued 5,150 shares of preferred stock for cash at $110 per share. Apr. 1 Issued 22,000...

Question