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An entity was organized in Jan. 2019 with authorized capital of P10 par value ordinary shares. On Feb. 1, 2019, 2 shares were issued at par for cash. On March 1, 2019. The entity's attorney accepted 5,000 shares of the ordinary shares in settlement for legal services with a fair value of P60,000. Share premium would increase on 1. Feb. 1, 2019 2. March 1, 2019 A) 1 only В 2 only both 1 and 2 D) neither 1 nor 2

An entity was organized in Jan. 2019 with authorized capital of P10 par value ordinary shares. On Feb. 1, 2019, 2 shares were issued at par for cash. On March 1, 2019. The entity's attorney accepted 5,000 shares of the ordinary shares in settlement for legal services with a fair value of P60,000. Share premium would increase on 1. Feb. 1, 2019 2. March 1, 2019 A) 1 only В 2 only both 1 and 2 D) neither 1 nor 2

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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An entity was organized in Jan. 2019 with authorized capital of P10 par value ordinary shares. On Feb. 1, 2019, 2 shares were issued at par for cash. On March 1, 2019. The entity's attorney accepted 5,000 shares of the ordinary shares in settlement for legal services with a fair value of P60,000. Share premium would increase on 1. Feb. 1, 2019 2. March 1, 2019 A) 1 only B) 2 only C) both 1 and 2 D neither 1 nor 2
Transcribed Image Text:An entity was organized in Jan. 2019 with authorized capital of P10 par value ordinary shares. On Feb. 1, 2019, 2 shares were issued at par for cash. On March 1, 2019. The entity's attorney accepted 5,000 shares of the ordinary shares in settlement for legal services with a fair value of P60,000. Share premium would increase on 1. Feb. 1, 2019 2. March 1, 2019 A) 1 only B) 2 only C) both 1 and 2 D neither 1 nor 2
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