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Danica Reign C. Figueroa Financial Accounting and Reporting Bsa 1C Problem 14

This document contains journal entries for treasury share transactions of three corporations - Gulane Corporation, Refozar Corporation, and Marasigan Corporation. For Gulane, entries are presented for the repurchase of 10,000 shares in March, 4,000 shares in April, and 2,000 shares in July. For Refozar, entries repurchase 24,000 shares in January, 4,000 shares in February, and 14,000 shares in March and 6,000 shares in April. For Marasigan, entries record the issuance of shares for land in March, shares for cash in April and June, and shares sold for cash and gain in July.

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3K views4 pages

Danica Reign C. Figueroa Financial Accounting and Reporting Bsa 1C Problem 14

This document contains journal entries for treasury share transactions of three corporations - Gulane Corporation, Refozar Corporation, and Marasigan Corporation. For Gulane, entries are presented for the repurchase of 10,000 shares in March, 4,000 shares in April, and 2,000 shares in July. For Refozar, entries repurchase 24,000 shares in January, 4,000 shares in February, and 14,000 shares in March and 6,000 shares in April. For Marasigan, entries record the issuance of shares for land in March, shares for cash in April and June, and shares sold for cash and gain in July.

Uploaded by

Danica Reign Figueroa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Danica Reign c.

Figueroa
Financial Accounting and Reporting
BSA 1C
Problem 14

1.
Issued Shares
1-Jan (500,000/5)= 100,000

Oustanding Shares
31-Mar 100,000-10,000 = 90,000

30-Jun 90,000-4,000 = 86,000

30-Sep 86,000-2,000 = 84,000

1.

Gulane Corporation
Journal Entries

Date Particulars F Debit Credit


2019
Mar. 28 Treasury Shares - O ( 10,000 x 15) 150,000
Cash 150,000

April 10 Cash ( 4,000 x 14) 56,000


Share Premium- TS 4,000
Treasury Shares - O (4,000 x 15) 60,000

July 5 Cash (2,000 x 16) 32,000


Share Premium - TS 2,000
Treasury Shares - O (2,000 x15) 30,000
3.

The Corporation should purchase its shares in order to deter any entity
from taking over the shares. It could expand the ownership of an entity
wherein it allows shares to be “re-cycled”.
Problem 15

2.

Refozar Corporation
Journal Entries

Date Particulars F Debit Credit


2018
Jan. 28 Treasury Shares - O (24,000 x 7) 168,000
Cash 168,000

10 Cash ( 4,000 x 9) 36,000


Share Premium- TS 8,000
Treasury Shares - O (4,000 x 7) 28,000

29 Cash (14,000 x 6) 84,000


Share Premium - TS 8,000
Retained Earnings 6,000
Treasury Shares ( 14,000 x 7) 98,000

31 Cash ( 6,000 x 7 ) 42,000


Treasury Shares ( 6,000 x 7) 42,000
Problem 17

1. .
Marasigan Corporation
Journal Entries

Date Particulars F Debit Credit


2018

Mar 21 Land 6,000,000


Share Capital 6,000,000

April 30 Ordinary Shares 2,250,000


Share Capital 2,250,000

June 25 Building 75,000


Share Capital 75,000

July 15 Ordinary Shares 800,000


Share Capital 800,000

Cash 1,820,000
Ordinary Shares 800,000
Gain on sale of Shares 1,020,000

2.

Land 6,000,000
Ordinary Shares 3,050,000
Building 75,000
  9,125,000

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