Equity Problem (53 points) QUILGO CORPORATION-Comprehensive Required: (1) Journalize the transactions below, including c

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Equity Problem 53 Points Quilgo Corporation Comprehensive Required 1 Journalize The Transactions Below Including C 1 (359.53 KiB) Viewed 38 times

Equity Problem (53 points) QUILGO CORPORATION-Comprehensive Required: (1) Journalize the transactions below, including closing entries and (2) Prepare the shareholders' equity section of Quilgo Company for 2021 in good form. The shareholders' equity section of Quilgo Corporation at December 31, 2020 shows the following selected balances: Ordinary Shares, P15 par value, 100,000 shares authorized, 25,000 shares issued, 21,000 shares outstanding P375,000 9% Preference Shares, P100 par value, cumulative 20,000 shares authorized 5,000 shares Issued and outstanding 500,000 Share Premium - Ordinary 325,000 Share Premium - Preference 200,000 Share Premium - Treasury 12,000 Retained Earnings 198.000 Treasury Shares, 4,000 shares at cost 100,000 Additional Information: The company maintains the policy that treasury shares are reissued on a first in, first out basis. No dividends were declared for the past two years. The following transactions affecting shareholders equity occurred during 2021 (no journal explanations needed): Jan 8 Feb 21 Mar 12 June 30 JUN 10 Oct 7 Nov 15 Dec 18 31 53 points Issued 10,000 shares of previously unissued ordinary shares for cash at P30/share An investor gave Quigo a parcel of land in exchange for 3,000 preference shares. The fair market value of land on that date is P350,000. Quilgo's preference share was trading in the stock exchange a: P33.50 per share Sold 3,000 of the treasury shares at P21 share Declared an 8% share dividend. The market value per share was #31.50 on this date Issued the share dividend declared on June 30 Acquired 5,000 ordinary shares for treasun at 228 per share. Sold 1,200 of the treasury shares al P27 per share. Declared a cash dividend of 22 on January 9 to shareholders of record on Dec 31. Show the allocation among preferred and ordinary shareholders in lieu of the ournal explanation. The company generated sales of P1.8 billion during the year. The company has a gross profit of 40% based on sales. Operating expense had a total of 312,000.