Professional Documents
Culture Documents
AP-5901Q - SHE.-Supporting Computation PDF
AP-5901Q - SHE.-Supporting Computation PDF
1 - Resolve Corporation
5,058,000 6,316,500 7 A
7) Memo entry
2 Cash 37,338,000
Subscriptions receivable - PS (300,000 x P105 x 70%) 22,050,000
Subscriptions receivable - CS [(900,000-60,000) x P26 x 70%] 15,288,000
Subscribed PS (300,000 x P100) 30,000,000
Subscribed CS [(900,000-60,000) x P2.5] 2,100,000
Preferred stock 30,000,000
Common stock 2,100,000
Subscribed CS (60,000 x P2.5) 150,000
APIC [60,000 x (P26-P2.5)] 1,410,000
Subscriptions receivable - CS (60,000 x P26 x 70%) 1,092,000
Cash (60,000 x P26 x 30%) 468,000
3 Treasury stock 4,200,000
Cash (150,000 shares x P28) 4,200,000
4 Preferred stock 30,000,000
APIC [300,000 x (P105-P100)] 1,500,000
Common stock (300,000 x 4 x P2.5) 3,000,000
APIC 28,500,000
5 Machinery 4,300,000
Treasury stock 4,200,000
APIC 100,000
6 Memo entry.
7 Income summary 830,000
Retained earnings 830,000
PROBLEM NO. 5 - Stamina Farms
Requirement No. 1 - A
Capital stock (40,000 x P100) 4,000,000
Retained earnings: 1,600,000
Beginning 1,400,000
Net income for 2005 3,000,000
Total stockholders equity 7,000,000
Divide by number of shares outstanding 40,000
Book value per share 175
Requirement No. 2 - A
Value of the shares to be surrendered (6,000 x P175) 1,050,000
Amount of cash shortage 600,000
Amount to be paid to the treasurer 450,000
Requirement No. 3 - A
Retained earnings before dividends 3,000,000
Dividends to remaining stockholders (value of shares surrendered) (1,050,000)
Retained earnings after dividends 1,950,000