1. Celtics Company was incorporated on January 1, 2019 with the following authorized capitalization: Ordinary share capital, 200,000 shares, P100 stated value - P20,000,000 10% Preference share capital, 200,000shares , P 50 par - P10,000,000 During 2019, the entity issued 150,000 ordinary shares for a total of P 18,000,000 and 50,000preference shares at P 60 per share. In addition, on December 15, 2019, subscription for 20,000 preference shares were taken at a purchase price of P 100. These subscribed shares were paid for on June 15, 2020. Net income for 2019 was P 5,000,000. What amount should be reported as total contributed capital on December 31, 2019? a. P28,000,000 b. P23,000,000 c. P26,000,000 d. P21,000,000
1. Celtics Company was incorporated on January 1, 2019 with the following authorized capitalization: Ordinary share capital, 200,000 shares, P100 stated value - P20,000,000 10% Preference share capital, 200,000shares , P 50 par - P10,000,000 During 2019, the entity issued 150,000 ordinary shares for a total of P 18,000,000 and 50,000preference shares at P 60 per share. In addition, on December 15, 2019, subscription for 20,000 preference shares were taken at a purchase price of P 100. These subscribed shares were paid for on June 15, 2020. Net income for 2019 was P 5,000,000. What amount should be reported as total contributed capital on December 31, 2019? a. P28,000,000 b. P23,000,000 c. P26,000,000 d. P21,000,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
Related questions
Question
1. Celtics Company was incorporated on January 1, 2019 with the following authorized capitalization:
Ordinary share capital, 200,000 shares, P100 stated value - P20,000,000
10%
During 2019, the entity issued 150,000 ordinary shares for a total of P 18,000,000 and 50,000preference shares at P 60 per share. In addition, on December 15, 2019, subscription for 20,000 preference shares were taken at a purchase price of P 100. These subscribed shares were paid for on June 15, 2020. Net income for 2019 was P 5,000,000. What amount should be reported as total contributed capital on December 31, 2019?
a. P28,000,000
b. P23,000,000
c. P26,000,000
d. P21,000,000
2. On Feb. 1, 2021, PT Corporation issued 5,000 shares of P100 par convertible preference shares forP110 per share. One share of preference shares can be converted into 2 shares of PT Corporation’s P10 par value ordinary shares at the option of the preference shareholder. On December 31, 2021, when the market was P40per share, all of the preference shares was converted. What amount should be credited to share premium preference on February 1, 2021?
a. P55,000
2. On Feb. 1, 2021, PT Corporation issued 5,000 shares of P100 par convertible preference shares forP110 per share. One share of preference shares can be converted into 2 shares of PT Corporation’s P10 par value ordinary shares at the option of the preference shareholder. On December 31, 2021, when the market was P40per share, all of the preference shares was converted. What amount should be credited to share premium preference on February 1, 2021?
a. P55,000
b. P45,000
c. P50,000
d. P40,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College