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    1. The document provides accounting information from the balance sheet of Alpha Corporation as of December 31, 2018, including various equity accounts and their balances. 2. It also lists several shareholder-related transactions that occurred at Aguillon Inc. during 2019, including the reissuance of treasury shares, issuance of bonds with detachable warrants, subscription of shares, and exercise of warrants. 3. The required tasks are to compute various equity-related amounts based on the information provided for Alpha Corporation. For Aguillon Inc., journal entries are required to record the shareholder transactions that took place in 2019.

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    1. The document provides accounting information from the balance sheet of Alpha Corporation as of December 31, 2018, including various equity accounts and their balances. 2. It also lists several shareholder-related transactions that occurred at Aguillon Inc. during 2019, including the reissuance of treasury shares, issuance of bonds with detachable warrants, subscription of shares, and exercise of warrants. 3. The required tasks are to compute various equity-related amounts based on the information provided for Alpha Corporation. For Aguillon Inc., journal entries are required to record the shareholder transactions that took place in 2019.

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    28 views1 page

    Q1 She

    Uploaded by

    Charles
    1. The document provides accounting information from the balance sheet of Alpha Corporation as of December 31, 2018, including various equity accounts and their balances. 2. It also lists several shareholder-related transactions that occurred at Aguillon Inc. during 2019, including the reissuance of treasury shares, issuance of bonds with detachable warrants, subscription of shares, and exercise of warrants. 3. The required tasks are to compute various equity-related amounts based on the information provided for Alpha Corporation. For Aguillon Inc., journal entries are required to record the shareholder transactions that took place in 2019.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    UM Digos College

    Department of Accounting Education


    ACC 221-Intermediate Accounting 3
    QUIZZER 1- SHAREHOLDER’S EQUITY
    of Aguillon’s December 31, 2018, balance sheet follows:
    PROBLEM 1. A partial list of the accounts and ending
    account balances taken from the post- trial balance of the Shareholders’ Equity:
    ALPHA CORPORATION on December 31, 2018 is Ordinary share P2 par value,
    shown as follows: 500,000 shares authorized,
    Account Amount (P) 90,000 shares issued,
    Accumulated profit- unappropriated 410,000.00 88,790 shares outstanding 180,000
    Bonds Payable 220,000.00 Paid-in capital in excess of par 1,820,000
    Ordinary shares Subscribed 50,000.00 Paid-in capital from treasury share
    Long term investment Retained earnings 324,689
    in equity securities 210,000.00 Less: Cost of 1,210 shares
    Additional paid-in capital of treasury share 72,600
    on ordinary shares 460,000.00 Total shareholders’ equity P 2,274,589
    Premium on bonds payable 30,000.00
    Authorized ordinary shares You have extracted the following information from the
    at Php 10.00 par value 900,000.00 accounting records and audit working papers.
    Preference shares subscribed 45,000.00
    Additional paid-in capital 2019
    on preference shares 112,000.00 Jan. 15 Aguillon reissued 650 shares of treasury
    Authorized preference shares share for P40 per share. The 1,210
    at Php 50.00 par value 400,000.00 shares of treasury share on hand at
    Gain on Sale of treasury shares 4,000.00 December 31, 2001, were purchased in
    Unrealized increase in value of one block in 2001. Aguillon used the
    securities available for sale 3,000.00 cost method for recording the treasury
    Ordinary shares warrant outstanding 20,000.00 shares purchased.
    Unissued ordinary shares 500,000.00
    Feb. 2 Sold 90, P1,000, 9% bonds due February
    Unissued preference shares 100,000.00
    1, 2005, at 103 with one detachable share
    Cash dividends payable-preference 50,000.00
    warrant attached to each bond. Interest is
    Donated capital 25,000.00
    payable annually on February 1. The fair
    Reserve for bond sinking fund 220,000.00
    market value of the bonds without the
    Reserve for depreciation 150,000.00
    share warrants is 97. The detachable
    Revaluation increment in properties 100,000.00
    warrants have a fair value of P60 each
    Subscription receivable
    and expire on February 1, 2005. Each
    - preference (long term) 15,000.00
    warrant entitles the holder to purchase 10
    Subscription receivable
    shares of Ordinary share at P40 per
    - common (long term) 20,000.00
    share.
    Mar. 6 Subscriptions for 1,400 shares of
    Ordinary share were issued at P44 per
    REQUIRED:
    share, payable 40% down and the
    balance by March 20.
    Compute the following:
    20 The balance due on 1,200 shares was
    1. 1.Ordinary shares issued
    received and those shares were issued.
    2. Preference shares issued
    The subscriber who defaulted on the 200
    3. Additional paid-in capital
    remaining shares forfeited the down
    4. Total contributed capital
    payment in accordance with the
    5. Total legal capital
    subscription agreement.
    6. Total stockholders’ equity
    Nov. 1 There were 55 share warrants detached
    from the bonds and exercised.
    PROBLEM 2. You have been assigned to the audit of
    Aguillon Inc., a manufacturing company. You have been
    REQUIRED: Prepare the journal entries for the current
    asked to summarize the transactions for the year ended
    year.
    December 31, 2019, affecting shareholders’ equity and
    other related accounts. The shareholders’ equity section

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