Aqua Corp. was incorporated on June 1, 2014 with an authorized 250,000 share of no-par ordinary share capital, stated value P15 and 10,000 shares of 10% preference share capital, par value P50. Transactions affecting company's share capital as of June 30, 2014 were as follows: June 1 Issued 50,000 ordinary shares for cash at P15 per share. 5 Issued 50,000 ordinary shares in exchange for assets with total market value of P900,000. 15 Received subscriptions for 100,000 ordinary shares at P30 and for 5,000 preference shares at P55. 25 Received full payment for subscriptions received on June 15 and the corresponding stock were issued. 1. What is the total paid-in capital in excess of par and stated value for both ordinary and preference shares? 2. How much is the total shareholder's equity?

Aqua Corp. was incorporated on June 1, 2014 with an authorized 250,000 share of no-par ordinary share capital, stated value P15 and 10,000 shares of 10% preference share capital, par value P50. Transactions affecting company's share capital as of June 30, 2014 were as follows: June 1 Issued 50,000 ordinary shares for cash at P15 per share. 5 Issued 50,000 ordinary shares in exchange for assets with total market value of P900,000. 15 Received subscriptions for 100,000 ordinary shares at P30 and for 5,000 preference shares at P55. 25 Received full payment for subscriptions received on June 15 and the corresponding stock were issued. 1. What is the total paid-in capital in excess of par and stated value for both ordinary and preference shares? 2. How much is the total shareholder's equity?

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

Aqua Corp. was incorporated on June 1, 2014 with an authorized 250,000 share of no-par
ordinary share capital, stated value P15 and 10,000 shares of 10% preference share capital, par
value P50.
Transactions affecting company's share capital as of June 30, 2014 were as follows:
June 1
Issued 50,000 ordinary shares for cash at P15 per share.
5
Issued 50,000 ordinary shares in exchange for assets with total market value of
P900,000.
15
Received subscriptions for 100,000 ordinary shares at P30 and for 5,000
preference shares at P55.
25
Received full payment for subscriptions received on June 15 and the
corresponding stock were issued.
1. What is the total paid-in capital in excess of par and stated value for both ordinary and
preference shares?
2. How much is the total shareholder's equity?

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