Exercise 10-5 (Share Split and Reverse Share Split; Recapitalization) On June 30, 2014, the capital accounts of Japorms Company are as follows: Ordinary Share Capital, P20 par, 50,000 shares Ordinary...

Extracted text: Exercise 10-5 (Share Split and Reverse Share Split; Recapitalization) On June 30, 2014, the capital accounts of Japorms Company are as follows: Ordinary Share Capital, P20 par, 50,000 shares Ordinary Share Premium P1,000,000 200,000


Extracted text: Instructions: Prepare the necessary journal entry to record each of the following independent transactions: 1. The company undertakes a 5 for 1 share split. The company undertakes a 1 for 4 share split. One new ordinary share with a par value of P15 is issued in exchange for one ordinary share with a par value of P25. One new ordinary share with a stated value of P25 is issued in exchange for one ordinary share with a par value of P25. a. b. C. d. 2. State the number of capital shares issued and outstanding for each independent transaction.