Problem #16

Required 1:
Unissued Ordinary Shares 7,500,000.00
Authorized Ordinary Shares 7,500,000.00
Unissued Preference Shares 90,000,000.00
Authorized Preference Shares 90,000,000.00

2-Feb Cash 576,000.00

Ordinary Shares 120,000.00
Share Premium- Ordinary Shares 456,000.00

15-Feb Land 795,000.00

Preference Shares 550,000.00
Share Premium- Preference Shares 245,000.00

30-Apr Organizational Expense 77,500.00

Ordinary Shares 12,500.00
Share Premium- Ordinary Shares 65,000.00

20-Nov Cash 315,000.00

Ordinary Shares 35,000.00
Share Premium- Ordinary Shares 280,000.00

30-Nov Treasury Shares 49,000.00

Cash 49,000.00

15-Dec Cash 125,000.00

Preference Shares 100,000.00
Share Premium- Preference Shares 25,000.00

30-Dec Cash 24,600.00

Treasury Shares 21,000.00
Share Premium- Treasury Shares 3,600.00

31-Dec Retained Earnings 32,500.00

Dividends Payable Preference Shares 32,500.00
Dividends Payable Preference Shares 32,500.00
Cash 32,500.00
 Required 2:
Gloria Detoya Corporation
Shareholder's Equity
31-Dec-16

Share Capital
Authorized Ordinary Shares
Less: Unissued Ordinary Shares
Authorized Preference Shares
Less: Unissued Preference Shares
Issued and Outstanding Ordinary Shares and Preference Shares
Add:
Share Premium-Ordinary Shares
Share Premium- Preference Shares
Share Premium- Treasury Shares
Total Share Capital

Retained Earnings
Profit
Preference Dividends Paid
Less: Treasury Shares

Total Shareholders' Equity

(600 x P35)

(5,500 + 1,000 x 5% P100)

poration
quity

Unissued Ordinary Shares

7,500,000.00 7,500,000.00
7,332,500.00 167,500.00 120,000.00
90,000,000.00 12,500.00
89,350,000.00 650,000.00 35,000.00
817,500.00 7,332,500.00

801,000.00
270,000.00
3,600.00 1,074,600.00
1,892,100.00

Treasury Shares
450,000.00 49,000.00
(32,500.00) 417,500.00 21,000.00
(28,000.00) 28,000.00

2,281,600.00
 Unissued Preference Shares
90,000,000.00
550,000.00
100,000.00
89,350,000.00
Problem #17: Donations of Assets and Shares
Required 1:
21-Mar Land 6,000,000.00
Donated Income 6,000,000.00

30-Apr Memorandum entry only

"Received 10,000 from Shareholder as donation"

25-Jun Mobile Office 675,000.00

Donated Income 675,000.00

15-Jul Cash 1,820,000.00

Donated Capital 1,820,000.00
Required 2:

Donated Capital
6,000,000.00
675,000.00
1,820,000.00

8,495,000.00
Problem #5A: Small Share Dividends

Date of Declaration (June 1, 2015) Retained Earnings 225,000.00

Shares Distributable
Share Premium
To record declaration of 10% share dividends.

Date of Record (June 15) No Entry

Date of Payment (July 1) Shares Distributable 50,000.00

Ordinary Shares
To record issuance of share dividends.
 55,000 - 5,000= 50,000 x 10%= 5,000 x P45= 225,000
50,000.00 5,000 x P10= 50,000
175,000.00 5,000 x P35= 175,000

50,000.00
Problem #5B: Large Share Dividends

Date of Declaration (November 1, 2015) Retained Earnings

Shares Distributable
To record declaration of 45% share dividends.

No Entry
Date of Record (December 1)
Shares Distributable
Date of Payment (December 31) Ordinary Shares
To record issuance of share dividends.
900,000.00 50,000 x 45% x P40
900,000.00

900,000.00
900,000.00
Problem #6: Share Dividends
Required 1:
Retained Earnings 1,000,000.00
Shares Distributable 1,000,000.00
To record declaration of 20% share dividends.

Shares Distributable 1,000,000.00

Ordinary Shares 1,000,000.00
To record issuance of share dividends.
Required 2:
Retained Earnings 750,000.00
Shares Distributable 500,000.00
Share Premium 250,000.00
To record declaration of 10% share dividends.

Shares Distributable 500,000.00

Ordinary Shares 500,000.00
To record issuance of share dividends.
Problem #7: Dividends

Date of Declaration (July 15, 2016)

Date of Payment (August 1, 2016)

Date of Declaration (December 1, 2016)

Date of Payment (December 15, 2016)

Retained Earnings 12,000.00
Cash Dividends Payable 12,000.00
To record declaration of dividend of P12 per share.

Cash Dividends Payable 12,000.00

Cash 12,000.00
To record payment of dividend.

Retained Earnings 14,400.00

Shares Distributable 12,000.00
Share Premium 2,400.00
To record declaration of 10% share dividends.

Shares Distributable 12,000.00

Ordinary Shares 12,000.00
To record issuance of share dividends.