Homework Help is Here – Start Your Trial Now!
Business
Accounting
Blazing Red Corporation is a

Blazing Red Corporation is a

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
EXERCISE 3 The Blazing Red Corporation is authorized to issue 100,000 P 10 par value ordinary shares and 30,000 10% cumulative and non-participating PI00 par preference shares. The corporation engaged in the following share capital transactions through December 31,2020: 30,000 ordinary shares were issued for P 380,000 and 12,000 preference shares for an equipment valued at P 1,500,000. Subscriptions for 10,000 ordinary shares have been taken and 40% of the subscription price of P 16 per share has been collected. The shares will be issued upon collection of the subscription price in full. • 1,000 ordinary treasury shares were purchased for P 18. Collected the balance on the subscription of 8,000 shares above and share certificates were accordingly issued. Subscribers on 2,000 shares defaulted and the shares were declared delinquent. Blazing Red paid P 2,000 cost for advertising the delinquent shares. Received bids on the delinquent shares. The amount due from the highest bidder was collected and the shares were issued. • The retained earnings balance on December 31,2020 is P 350,000. REQUIRED: Total Shareholder's Equity of Blazing Red Corporation as at December 31,2020.
Transcribed Image Text:EXERCISE 3 The Blazing Red Corporation is authorized to issue 100,000 P 10 par value ordinary shares and 30,000 10% cumulative and non-participating PI00 par preference shares. The corporation engaged in the following share capital transactions through December 31,2020: 30,000 ordinary shares were issued for P 380,000 and 12,000 preference shares for an equipment valued at P 1,500,000. Subscriptions for 10,000 ordinary shares have been taken and 40% of the subscription price of P 16 per share has been collected. The shares will be issued upon collection of the subscription price in full. • 1,000 ordinary treasury shares were purchased for P 18. Collected the balance on the subscription of 8,000 shares above and share certificates were accordingly issued. Subscribers on 2,000 shares defaulted and the shares were declared delinquent. Blazing Red paid P 2,000 cost for advertising the delinquent shares. Received bids on the delinquent shares. The amount due from the highest bidder was collected and the shares were issued. • The retained earnings balance on December 31,2020 is P 350,000. REQUIRED: Total Shareholder's Equity of Blazing Red Corporation as at December 31,2020.
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS