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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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BIU abx X, x Paste A-空 A Aa - A A Styles Editing Clipboard Font Paragraph GStyles 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 PAGE 2 OF 3 361 WORDS 100
Transcribed Image Text:BIU abx X, x Paste A-空 A Aa - A A Styles Editing Clipboard Font Paragraph GStyles 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 PAGE 2 OF 3 361 WORDS 100
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