Transcribed Image Text: Problem #19
The shareholders’ equity section of Nazario Freight Express, Inc. as at Dec. 31, 2018
appeared as follows:
6% Preference Shares, P75 par, 200,000 shares authorized,
70,000 shares issued
Ordinary Shares, P5 stated value, 500,000 shares authorized,
share issued and
Total Share Capital and Retained Earnings
Less: Treasury Stock – Ordinary, 10,000 shares, at Cost
Total Shareholders’ Equity
Provide the answers to each of the following questions:
1. What is the total issue price of the preference shares?
2. How many ordinary shares were issued?
3. How many ordinary shares are outstanding?
4. What was the total issue price of the ordinary shares?
5. What is the total legal capital of the corporation?
6. What is the totál contributed capital of the corporation?
7. What is the total shareholders’ equity?
8. For how much per share was the treasury stock purchased?
9. What is the amount of the required preference dividends? Transcribed Image Text: Problem #11
Subscription of Shares
Sousa Caterers, Inc. was organized on May 13, 2019 and the articles stipulated the
following authorized capital:
a. 4,500 shares of preference shares, P110 par value
b. 42,000 shares of ordinary shares, P30 par value
Sousa Caterers, Inc. completed the following transactions during its first year of
Received subscriptions to 14,000 ordinary shares at P30 per share;
collected 65% of the subscription price.
· 7 Subscribers to 14,000 ordinary shares paid an additional 20% of the
6 Subscribers to 14,000 ordinary shares paid an additional 15% of the
subscription price. Sousa Caterers, Inc. issued the 14,000 shares of
Sept. 14 Received subscriptions to 4,300 ordinary shares at P32 per share;
collected 60% of the subscription price.
Required: Prepare the journal entries.