Item No. 11 is based on the following information:air IE sedmeo90000,002 9 6000,048 942dAlpha Company was incorporated at the beginning of this year with thefollowing authorized capitalization:15.39.dM2.9termotrand on 21o 200,000, 10% cumulative preference shares, par P 50; andsqmo) sinan to1009o 200,000 ordinary shares, no-par, P 100 stated value shares.9V91-During the year, Alpha issued 50,000 preference shares at P 60 pershare and 150,000 ordinary shares for a total of P 18,000,000. In addition,subscriptions for 20,000 preference shares were taken in December this year ata purchase price of P 100 per share. These subscribed shares will be paid in! January next year. Profit for this year was P 5,000,000.I11. What should Alpha report as total contributed capital on its balance sheetas at December 31 this year?c.P 26,000,000.22.09Ia. P 21,000,000. [d.P 28,000,000.b. P 23,000,000.),81 9OH 20

Shares are the units of the total stock of a company which shows the fractional ownership of the…

a purchase price of P 100 per share. These subsc January next year. Profit for this year was P 5,000,000. 11. What should Alpha report as total contributed capital on its balance sheet as at December 31 this year? c. P 26,000,000. a. P 21,000,000. d. P 28,000,000. b. P 23,000,000.

a purchase price of P 100 per share. These subsc January next year. Profit for this year was P 5,000,000. 11. What should Alpha report as total contributed capital on its balance sheet as at December 31 this year? c. P 26,000,000. a. P 21,000,000. d. P 28,000,000. b. P 23,000,000.

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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Question

Item No. 11 is based on the following information:
air IE sedmeo90
000,002 9 6
000,048 9
42
d
Alpha Company was incorporated at the beginning of this year with the
following authorized capitalization:
15.39.d
M2.9
termotr
and on 21
o 200,000, 10% cumulative preference shares, par P 50; and
sqmo) sinan to
1009
o 200,000 ordinary shares, no-par, P 100 stated value shares.
9V91-
During the year, Alpha issued 50,000 preference shares at P 60 per
share and 150,000 ordinary shares for a total of P 18,000,000. In addition,
subscriptions for 20,000 preference shares were taken in December this year at
a purchase price of P 100 per share. These subscribed shares will be paid in
! January next year. Profit for this year was P 5,000,000.
I
11. What should Alpha report as total contributed capital on its balance sheet
as at December 31 this year?
c.
P 26,000,000.22.09
I
a. P 21,000,000. [
d.
P 28,000,000.
b. P 23,000,000.),81 9
OH 20

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