During its first year of operations, LEBANON COMPANY entered into the following transactions relating to shareholders' equity. Lebanon's articles of incorporation authorized the issue of 2,400,000 ordinary shares, P10 par per share, and 300,000 preference shares, P50 par per share. Mar. 14 Sold 500,000 ordinary shares for P100 per share. 15 Issued 20,000 ordinary shares to attorneys in exchange for legal services. 15 Sold 35,000 of its ordinary shares and 10,000 preference shares for P6,000,000. Nov. 20 Issued 1,900 of its ordinary shares in exchange for equipment for which the cash price was known to be P185,000. Based on the preceding information, determine the correct balance of each of the following accounts. Compute for the ordinary share capital, share premium-ordinary shares, preference share capital and share premium-preference share.

During its first year of operations, LEBANON COMPANY entered into the following transactions relating to shareholders' equity. Lebanon's articles of incorporation authorized the issue of 2,400,000 ordinary shares, P10 par per share, and 300,000 preference shares, P50 par per share. Mar. 14 Sold 500,000 ordinary shares for P100 per share. 15 Issued 20,000 ordinary shares to attorneys in exchange for legal services. 15 Sold 35,000 of its ordinary shares and 10,000 preference shares for P6,000,000. Nov. 20 Issued 1,900 of its ordinary shares in exchange for equipment for which the cash price was known to be P185,000. Based on the preceding information, determine the correct balance of each of the following accounts. Compute for the ordinary share capital, share premium-ordinary shares, preference share capital and share premium-preference share.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 5PB: Paydirt Limestone, Incorporated was organized several years ago and was authorized to issue...

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