authorized capitalization: Ordinary share capital, 200,000 shares, P100 stated value - P20,000,000 10% Preference share capital, 200,000shares , P 50 par - P10,000,000 During 2019, the entity issued 150,000 ordinary
authorized capitalization: Ordinary share capital, 200,000 shares, P100 stated value - P20,000,000 10% Preference share capital, 200,000shares , P 50 par - P10,000,000 During 2019, the entity issued 150,000 ordinary
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Celtics Company was incorporated on January 1, 2019 with the following authorized capitalization:
Ordinary share capital, 200,000 shares, P100 stated value - P20,000,000
10%Preference share capital, 200,000shares , P 50 par - P10,000,000
During 2019, the entity issued 150,000 ordinary shares for a total of P 18,000,000 and 50,000preference shares at P 60 per share. In addition, on December 15, 2019, subscription for 20,000 preference shares were taken at a purchase price of P 100. These subscribed shares were paid for on June 15, 2020. Net income for 2019 was P 5,000,000. What amount should be reported as total contributed capital on December 31, 2019?Required to answer. Single choice.
Ordinary share capital, 200,000 shares, P100 stated value - P20,000,000
10%
During 2019, the entity issued 150,000 ordinary shares for a total of P 18,000,000 and 50,000preference shares at P 60 per share. In addition, on December 15, 2019, subscription for 20,000 preference shares were taken at a purchase price of P 100. These subscribed shares were paid for on June 15, 2020. Net income for 2019 was P 5,000,000. What amount should be reported as total contributed capital on December 31, 2019?Required to answer. Single choice.
a. P23,000,000
b. P28,000,000
c. P26,000,000
d. P21,000,000
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