CASE 1 - CONVICTION

Authorized ordinary shares, P100 par value

Cash dividends payable
Donated capital
Gain on sale of treasury shares
Net unrealized loss on equity securities at other comprehensive income
Premium on capital shares
Premium on bonds payable
Reserve for bond sinking fund
Reserve for depreciation
Revaluation increment on property
Retained earnings, unappropriated
Subscribe capital shares
Shares subscriptions receivables
Shares warrants outstanding
Treasury shares, at cost
Unissued ordinary shares
 Share capital Legal cap. Share premium RE- app TSHE
4,000,000 - - - - -
160,000 - - - - -
800,000 800,000 800,000
80,000 80,000 80,000
96,000 (96,000)
320,000 320,000 320,000
240,000 - - - - -
400,000 400,000 400,000
600,000 - - - - -
800,000 800,000
720,000 720,000
480,000 480,000
120,000 360,000
200,000 200,000 200,000
144,000 144,000 (144,000)
800,000 3,200,000 3,200,000 3,200,000
3,200,000 3,680,000 1,400,000 544,000 6,640,000
CASE 2 - TENACITY

26-Jan Treasury shares (75,000 x 11) 825,000

Cash 825,000

4-Apr Cash (45,00 x 14) 630,000

Treasury shares (45,000 x 11) 495,000
Share prem - TS 135,000

1-Jun Retained earnings 870,000

Cash dividend payable 870,000

15-Aug Memo

30-Sep Cash (150,000 x 2 x 12) 3,600,000

Ord share cap. (150,000 x 2 x 10 3,000,000
Share prem - ord 600,000

2-Nov Memo

5-Dec Equipment 390,000

Ord share cap. (60,000 x 5) 300,000
Share prem. - ord 90,000

31-Dec Income summary 720,000

RE 720,000
 Ord. share Share prem RE TS TSHE
Beg. Balances 9,000,000 750,000 2,700,000 12,450,000
26-Jan 825,000 (825,000)
4-Apr 135,000 (495,000) 630,000
1-Jun (870,000) (870,000)
15-Aug - - - - -
30-Sep 3,000,000 600,000 3,600,000
2-Nov - - - - -
5-Dec 300,000 90,000 390,000
31-Dec 720,000 720,000
End. Balances 12,300,000 1,575,000 2,550,000 330,000 16,095,000

Total RE 2,550,000
Appropriation for TS (330,000)
Unappropriated RE 2,220,000
CASE 3 - DETERMINATION

Cash (6,750 x 35) 236,250

Share options outs. (6,750 x 5) 33,750
Ord share cap. (6,750 x 3) 20,250
Share prem. - ord 249,750

Cash 3,000,000
Disc. On bonds payable 12,000
Bonds payable 3,000,000
Share warrants outs. 12,000

Cash (37,275 x 40) 1,491,000

Ord. share cap. (37,275 x 3) 111,825
Share prem. - ord 1,379,175
(375,000 +6,750 - 9,000 ) / 10 = 37,275

Cash (3,000 x 2 x 40) 240,000

Share warrants outs. 12,000
Ord share cap. (3,000 x 2 x 3) 18,000
Share prem. Ord 234,000

Share options outs. (225,000 - 33,750) 191,250

Share prem. From expried share opts. 191,250

Income summary 375,750

RE 375,750
 Ord share Share prem RE TSHE
Beg. Balances 1,125,000 10,800,000 720,000 12,645,000
a 20,250 216,000 236,250
b. 12,000 12,000
c 111,825 1,379,175 1,491,000
d 18,000 222,000 240,000
e - - - -
f 375,750 375,750
Ending balances 1,275,075 12,629,175 1,095,750 15,000,000
CASE 4 - REYNALDO Co.

ENTRY MADE
1/5/2016 Cash 12,000,000
Ordinary Share Capital 12,000,000
Authorized the issuance of 100,000 shares at P120 per share.

7/31/2016 Ordinary share capital 1,100,000

Cash 1,100,000
Authorized the acquisition of 10,000 shares at P110 per share.

11/25/2016 Cash 575,000

Retained earnings 575,00
Authorized the re-issuance of 5,000 treasury shares at P115 per share.

12/16/2016 Retained earnings 1,090,000

Ordinary share capital 1,090,000
Declared a 10% share dividend when market value is P130 per share.

12/31/2016 Income Summary 8,000,000

Retained earnings 8,000,000
Net income reported.
 SHOULD BE
Cash 12,000,000
Ordinary Share Capital 10,000,000
Share prem - ord 2,000,000

Treasury shares 1,100,000

Cash 1,100,000

Cash 575,000
Treasury share 550,000
Share prem. - TS 25,000

Retained earnings 1,235,000

Share dividend distributable 950,000
Share prem. Ord 285,000

Income Summary 8,000,000

Retained earnings 8,000,000
 ADJUSTMENTS
Ordinary Share Capital 2,000,000 Beg.balances before adjustments
Share prem - ord 2,000,000 adjustments
a.
b.
c.
Treasury shares 1,100,000
Ordinary Share Capital 1,100,000

Adjusted balances
Retained earnings 575,000
Treasury share 550,000
Share prem. - TS 25,000
Total RE
Retained earnings 145,000 Appropriation for TS
Ordinary Share Capital 1,090,000 Unappropriated RE
Share dividend distributable 950,000
Share prem. Ord 285,000

No entry
Share cap Share prem. RE TS TSHE
11,990,000 - 7,485,000 - 19,475,000
-
(2,000,000) 2,000,000 -
1,100,000 1,100,000 -
25,000 (575,000) (550,000) -
(1,090,000) (145,000) (1,235,000)
950,000 285,000 1,235,000
-
10,950,000 2,310,000 6,765,000 550,000 19,475,000

6,765,000
(550,000)
6,215,000
CASE 5 - MOVED ON CO,
OSC SP- ordShare div. distri
Donated cap PSC SP - pref
Unadjuste 2,500,000 450,000 - 5,000,000 600,000
a. (15,000) 15,000
b. - (8,000) 8,000
c. 251,738 359,625
8,500
Adjusted 2,485,000 716,738 359,625 8,500 4,992,000 608,000

Ordinary share cap, unadj. 2,500,000 SP - ord

adjustment (15,000) SP - pref
Should be 2,485,000 TOTAL
Par 5
Issued 497,000
Treasury (16,500 + 1,000) 17,500
Oustatnding 479,500
rate 15%
MV of shares 8.50
Amount should be charge 611,363
Amount charge at par 359,625
Additional charge to RE 251,738
 RE TS TSHE
3,250,000 (141,075) 11,658,925
-
-
(251,738) 359,625
(8,500) -
2,998,262 (149,575) 12,018,550
12,018,550
-
716,738
608,000
1,324,738
CASE 6 RIKING BALL
CASE 7 -
CASE 8 - CHARLYN

Year 1 (500 -75) x 100 x15 x1/3 212,500

Year 2 (500 - 60) x 100 x15 x2/3) - 212,500 227,500
Year 3 (500 -57 ) x 100 x15 x3/3 -440,000 224,500
CASE 9 - PIPOY

Cash price of equipment 5,000,000

FV shares 1/1/15 (40,000 x 110) 4,400,000
Equity component 600,000

FV shares, 12/31/15 (40,000 x 130) 5,200,000

FV shares 1/1/15 (40,000 x 110) 4,400,000
Interest expense 800,000

Cash price of equipment 5,000,000

Par Value of shares (50,000 x 50) 2,500,000
Share premium 2,500,000
COMPREHENSIVE - HAPI

10-Jan Ord. share cap. (30,000 x 5) 150,000

Share prem. - ord (30,000 x 5) 150,000
Treasury shares 270,000
Share prem. - retirement 30,000

15-Feb Retained earnings (10,000 x 70) 700,000

Property div payable 700,000

12-Mar E I @ FVTPL 50,000

Unrealized gain (loss) - PL 50,000

Retained earnings 50,000

Property div payable 50,000

Property div payable 750,000

E I @ FVTPL 750,000

1-Apr Memo: issued share rights…

25-Apr Cash (840,000 / 4 x 11) 2,310,000

Ord. share cap (840,000 / 4 x 3) 630,000
Share prem. - ord 1,680,000

Memo: expired the remaining rights….

Retained earnings (100,000 x 2) 200,000

Share options outstanding 200,000

Cash (80,000 x 8) 640,000

Share options outstanding (80,000 x 2) 160,000
Ord. share cap (80,000 x 3) 240,000
Share prem. - ord 560,000

12-Dec Retained earnings 180,000

Cash dividends payable 180,000

31-Dec E I @ FVTOCI 110,000

Unrealized gain (loss) - OCI 110,000

31-Dec Retained earnings 275,000

Income tax expense 225,000
 Rent income 500,000

31-Dec Income summary 2,600,000

Retained earnings 2,600,000