Financial Accounting and ReportingTopic: Issuance of Share Capital 3. ABC Corporation is authorized to issue 80,000 ordinary shares. During the current year, thecorporation issued 25,000 shares.Required:Prepare the required entry to record the issuance of the ordinary shares under each of the followingassumptions:The shares have a par value of P5 and were sold for P20 per shareb. The shares are no-par but have a stated value of P10. The total issue price was P850,000.The shares are no-par and have no stated value. They were issued at P25а.с.pershare

(a) Paid in capital in excess of par per share = 20 - 5 = 15 per shares

Answered: 3. ABC Corporation is authorized to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Financial Accounting and Reporting

Topic: Issuance of Share Capital

3. ABC Corporation is authorized to issue 80,000 ordinary shares. During the current year, the
corporation issued 25,000 shares.
Required:
Prepare the required entry to record the issuance of the ordinary shares under each of the following
assumptions:
The shares have a par value of P5 and were sold for P20 per share
b. The shares are no-par but have a stated value of P10. The total issue price was P850,000.
The shares are no-par and have no stated value. They were issued at P25
а.
с.
per
share

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

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