CFAS Company issued 100,000, P50 par value, ordinary shares and20,000, P100 par value, preference shares for a total considerationof P12,900,000. At this date, the ordinary share was selling forP100 per share and the preference share was selling for P250 pershare.What amount of the proceeds should be allocated to share premiumpreference shares?

Share premium is an excess value of proceeds over the par value of the share. It can be calculated…

Answered: CFAS Company issued 100,000, P50 par…

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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MOL Company has P200,000 available to pay dividends. It has 12,000 10% preference shares (of which, 300 shares are in the treasury), P100 par and 50,000 ordinary shares with a par of P40. The preference share is selling for P125 and the ordinary share is selling at P50 per share. Required: Determine the amount of dividends and dividends per share to be paid to each class of share for each of the following independent assumptions. - Preference share capital is non-participating and non-cumulative. - Preference share capital is non-participating and cumulative. Preference dividends are two years in arrears at the beginning of the year. - Preference share capital is fully participating and cumulative. Preference dividends are one year in arrears at the beginning of the year. - Preference share…
Fraudi Company issued 50,000 shares of its P100 par ordinary and 80,000 shares of its P50 convertible preference for a total amount of P12,500,000. At the date of issue, the ordinary shares had a market value of P120 per share and the preference shares are selling at P75 per share. What is the amount credited to share premium from preference shares?
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FPJ Inc. received subscription for 5,250 Preference Shares at P 10 above par value of P 200 per share. After a down payment of P 125 per share from all the subscribers, how much is the balance of the Subscription
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XYZ SAOG has in issue 5 million, RO 1 equity share. The company decided to make a bonus issue in the ratio of 2 for 5 shares held. Prior to issue of bonus the company had Share premium of OMR 2,500,000. Which of the following journal entry is Correct in respect of issuing bonus shares? a. Debit Share premium OMR 2,000,000 Credit Share Capital OMR 2,000,000 b. Debit Share capital OMR 7,000,000 Credit Share premium OMR 7,000,000 c. Debit Share capital OMR 2,500,000 Credit Share premium OMR 2,500,000 d. Debit Share premium OMR 500,000 Credit Share Capital OMR 500,000
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On December 31, 20x1, Cassy Co. issued 10,000 shares with par value of P400 per share insettlement of a P4,000,000 loan payable with a related unamortized discount of P80,000, andaccrued interest of P360,000. On December 31, 20x1, the shares are selling at P480 per share. Howmuch is the gain(loss) on the extinguishment of the debt?
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Compute the gains or loss of the investment of C for 100 shares with par value of P5 at the beginning of the year which was sold at P10 per share the end of the year and D for 100 shares also with par value of P5 and was sold at P3 at the end of the year.
TWENTY-FIVE Corporation issued 100,000 convertible preference shares with P50 par at P70 per share. One preference share can be converted into two ordinary shares with P30 par value at the option of the shareholder. Subsequently, 80% of the preference shares were converted into ordinary shares. The market value of the ordinary share on the conversion date was P35. Journal entry to record the conversion of preference shares should include credit to:
TRUE OR FALSE When 10,000 shares of P20 par value ordinary shares are issued in payment for a parcel of land with a fair market value of P300,000, the Ordinary Shares account is debited for P200,000, and the Share Premium account is debited for P100,000.

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