_17. What amount will appear on the December 31, 2018 statement of financial position as Ordinary Share Capital?
_17. What amount will appear on the December 31, 2018 statement of financial position as Ordinary Share Capital?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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For letter J number 17, below is my answer. My question is which of these answers is correct? Please explain to me why is it correct.
answer A:
|
February issuance (30,000 shares x P30) |
P900,000 |
|
December issuance (20,000 shares x P30 x 1/2) |
P300,000 |
|
Total ordinary share capital |
P1,200,000 |
answer B:
Total # of shares issued 30,000
multiple by par value 30
Ordinary shares capital 900,000
Transcribed Image Text:I.
Worldwide Company was authorized to issue 10,000 preference shares of
P200 par value and 100,000 ordinary shares of P20 par value. Subscription
for 4,000 preference shares was received at P225 per share with a down
payment of 25%. The balance is payable after 60 days.
16. What is the amount of Share Premium - Preference
recognized by Worldwide upon receipt of the
preference share subscription?
J.
authorized share capital of P3,000,000 divided into 100,000 shares of P30
par. In February, 30,000 shares were sold for P40 per share. In March,
20,000 shares were sold on a subscription basis at a price of P45 per share.
As of December 31, 2018, one-half of the subscriptions in March was
collected.
On January 31, 2018, Mendoza Corporation was incorporated with an
Transcribed Image Text:17. What amount will appear on the December 31, 2018
statement of financial position as Ordinary Share
Capital?
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