Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
28
Transcribed Image Text:ABC Corporation was organized on Feb 01, 2021. The corporation was authorized to issue
40,000 shares of 8% preference shares, P130 par value, and 150,000 shares of ordinary shares,
P70 par value. Transactions for the year were as
follows:
Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash
Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair
market value of P400,000
May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment
were received.
How much is the legal capital at the end of the year 2021?
O P4,760,000
P5,755,000
O P4,225,000
O P3,500,000
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
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education