8. Asp Co. was organized on January 2, 20x1, with 30,000 authorized shares of P10 par ordinary share During 20x1 the corporation had the following capital transactions: Jan. 5 july 74 Dec. 27 Issued 20,000 shares at P15 Purchased 5,000 shares at P17 Reissued the 5,000 shares held in treasury at P20 per share. per share. per share. Asp used the cost method to record the purchase and reissuance of the treasury shares. In its December 31, 20x1, balance sheet, what amount should Asp report as additional paid-in capital in excess of par? a. 100,000 b. 125,000 c. 140,000 d. 115,000
8. Asp Co. was organized on January 2, 20x1, with 30,000 authorized shares of P10 par ordinary share During 20x1 the corporation had the following capital transactions: Jan. 5 july 74 Dec. 27 Issued 20,000 shares at P15 Purchased 5,000 shares at P17 Reissued the 5,000 shares held in treasury at P20 per share. per share. per share. Asp used the cost method to record the purchase and reissuance of the treasury shares. In its December 31, 20x1, balance sheet, what amount should Asp report as additional paid-in capital in excess of par? a. 100,000 b. 125,000 c. 140,000 d. 115,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Answer number 8
Transcribed Image Text:BIU abx X, x
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b. P20,000
P300,000
P300,000
P60,000
P580,000
c. P600,000
d. P600,000
PO
P240,000
8. Asp Co. was organized on January 2, 20x1, with 30,000 authorized shares of P10 par ordinary shares
During 20x1 the corporation had the following capital transactions:
Jan. 5
juiy 14
Dec. 27
Issued 20,000 shares at Pl15
per
share.
Purchased 5,000 shares at P17
per
share.
Reissued the 5,000 shares held in treasury at P20
share.
per
Asp used the cost method to record the purchase and reissuance of the treasury shares. In its December
31, 20x1, balance sheet, what amount should Asp report as additional paid-in capital in excess of par?
a. 100,000
b. 125,000
c. 140,000
d. 115,000
On March 1, 20x1, Rva Corp, issued 1,000 shares of its P20 par value ordinary shares and 2,000 shares
of its P20 par value convertible preference shares for a total of PS0,000. At this date, Rva's ordinarv
share was selling for P36 per share, and the convertible preference share was selling for P27
What amount of the proceeds should be allocated to Rva's convertible preference share?
a. 60,000
9.
per
share.
b. 54,000
c.48.000
d. 44,000
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