15. The net necessary net adjustment involves an adjustment to additional paid in capital in the amount of: The following information has been taken from the Accumulated profits ledger accounts of GBC Inc. a. Total net income since incorporation b. Total cash dividends paid P3,200,000 150,000 c. Carrying value of the company's equipment declared as property divided 600,000 150,500 250,000 375,000 413,200 700,000 515,000 215,000 45,000 d. Proceeds from sale of donated stocks e. Total value of stock dividends distributed f. Gain on treasury share transaction g. Unamortized premium on bonds payable h. Appropriated for plant expansion i. Loss on treasury share reissue j. Share premium in excess of par from issued shares k. Share issuance expense 1. Appropriated for remaining treasury shares at cost P50/share Additional notes: 1,000,000 The equipment declared as dividends had a recoverable value of P450,000 as of the date of declaration. The stock dividends distributed was based on a 10% share dividend declared on 100,000, P25 par value shares issued shares. The market value of shares on the date of declaration was at P42 per share. The only transactions affecting the treasury shares were those described in item f and item i.

15. The net necessary net adjustment involves an adjustment to additional paid in capital in the amount of: The following information has been taken from the Accumulated profits ledger accounts of GBC Inc. a. Total net income since incorporation b. Total cash dividends paid P3,200,000 150,000 c. Carrying value of the company's equipment declared as property divided 600,000 150,500 250,000 375,000 413,200 700,000 515,000 215,000 45,000 d. Proceeds from sale of donated stocks e. Total value of stock dividends distributed f. Gain on treasury share transaction g. Unamortized premium on bonds payable h. Appropriated for plant expansion i. Loss on treasury share reissue j. Share premium in excess of par from issued shares k. Share issuance expense 1. Appropriated for remaining treasury shares at cost P50/share Additional notes: 1,000,000 The equipment declared as dividends had a recoverable value of P450,000 as of the date of declaration. The stock dividends distributed was based on a 10% share dividend declared on 100,000, P25 par value shares issued shares. The market value of shares on the date of declaration was at P42 per share. The only transactions affecting the treasury shares were those described in item f and item i.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2021: Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/21 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Common stock Additional paid-in capital Penske $ (742,000) 264,700 187,000 Not given 80,000 (788,000) 498,000 990,000 772,000 Note: Parentheses indicate a credit balance. Consolidated copyrights Consolidated net income C. Consolidated retained earnings d. Consolidated goodwill Not given (600,000) (600,000) ($20 par) (150,000) a. b. Stanza $ (652,000) 163,000 224,000 0 60,000 (330,000) 598,000 384,000 1,190,000 Amounts 0 On January 1, 2021, Penske acquired all of Stanza's outstanding stock for $829,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition, copyrights (with a six-year remaining life) have a $456,000 book value but a…