Alpha Beta Inc. was organized on Jan. 1, 2021. It is authorized to issue 20,000 preference shares with P50 par value, and 50,000 shares of no-par ordinary shares with stated value of P10. The following stock transactions were completed during 2021: Jan. 10 Issued 10,000 ordinary shares for cash at P35 per share. Mar. 1 Issued 10,000 preference shares for cash at P55 per share. Apr. 1 Issued 2,500 ordinary shares for land. The fair market value of the land was PS5,000. May 1 Issued 7,500 ordinary shares for cash at P40 per share. Issued 1,000 ordinary shares to lawyers in payment of their bill for P50,000 pertaining to services rendered in helping the company organize. Aug. 1 Sept. 1 Issued 500 ordinary shares for cash at P60 per share. Nov. 1 Issued 2,000 preference shares for cash at P53 per share.

Alpha Beta Inc. was organized on Jan. 1, 2021. It is authorized to issue 20,000 preference shares with P50 par value, and 50,000 shares of no-par ordinary shares with stated value of P10. The following stock transactions were completed during 2021: Jan. 10 Issued 10,000 ordinary shares for cash at P35 per share. Mar. 1 Issued 10,000 preference shares for cash at P55 per share. Apr. 1 Issued 2,500 ordinary shares for land. The fair market value of the land was PS5,000. May 1 Issued 7,500 ordinary shares for cash at P40 per share. Issued 1,000 ordinary shares to lawyers in payment of their bill for P50,000 pertaining to services rendered in helping the company organize. Aug. 1 Sept. 1 Issued 500 ordinary shares for cash at P60 per share. Nov. 1 Issued 2,000 preference shares for cash at P53 per share.

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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