During its first year of operations, LEBANON COMPANY entered into the following transactions relating t shareholders' equity. Lebanon's articles of incorporation authorized the issue of 2,400,000 ordinary shan per share, and 300,000 preference shares, P50 par per share. Mar. 14 Sold 500,000 ordinary shares for P100 per share. 15 Issued 20,000 ordinary shares to attorneys in exchange for legal services. 15 Sold 35,000 of its ordinary shares and 10,000 preference shares for P6,000,000. Nov. 20 Issued 1,900 of its ordinary shares in exchange for equipment for which the cash price was kn P185,000. Based on the preceding information, determine the correct balance of each of the following accounts. 1. Ordinary share capital a. P5,569,000 b. Р5,219,000 c. P5,550,000 d. P6,069,000 2. Share premium - ordinary shares a. P46,800,000 b. P49,950,000 c. P52,116,000 d. P50,116,000 3. Preference share capital a. P2,000,000 b. РО с. Р500,000 d. P2,500,000 4. Share premium - preference shares a. P2,500,000 b. P5,150,000 c. P2,000,000 d. PO

During its first year of operations, LEBANON COMPANY entered into the following transactions relating t shareholders' equity. Lebanon's articles of incorporation authorized the issue of 2,400,000 ordinary shan per share, and 300,000 preference shares, P50 par per share. Mar. 14 Sold 500,000 ordinary shares for P100 per share. 15 Issued 20,000 ordinary shares to attorneys in exchange for legal services. 15 Sold 35,000 of its ordinary shares and 10,000 preference shares for P6,000,000. Nov. 20 Issued 1,900 of its ordinary shares in exchange for equipment for which the cash price was kn P185,000. Based on the preceding information, determine the correct balance of each of the following accounts. 1. Ordinary share capital a. P5,569,000 b. Р5,219,000 c. P5,550,000 d. P6,069,000 2. Share premium - ordinary shares a. P46,800,000 b. P49,950,000 c. P52,116,000 d. P50,116,000 3. Preference share capital a. P2,000,000 b. РО с. Р500,000 d. P2,500,000 4. Share premium - preference shares a. P2,500,000 b. P5,150,000 c. P2,000,000 d. PO

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 4PA: Wingra Corporation was organized in March. It is authorized to issue 500,000 shares of $100 par...

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Question

During its first year of operations, LEBANON COMPANY entered into the following transactions relating to
shareholders' equity. Lebanon's articles of incorporation authorized the issue of 2,400,000 ordinary shares, P10 par
per share, and 300,000 preference shares, P50 par per share.
Mar. 14 Sold 500,000 ordinary shares for P100 per share.
15 Issued 20,000 ordinary shares to attorneys in exchange for legal services.
15 Sold 35,000 of its ordinary shares and 10,000 preference shares for P6,000,000.
Nov. 20 Issued 1,900 of its ordinary shares in exchange for equipment for which the cash price was known to be
P185,000.
Based on the preceding information, determine the correct balance of each of the following accounts.
1. Ordinary share capital
a. P5,569,000
b. Р5,219,000
c. P5,550,000
d. P6,069,000
2. Share premium - ordinary shares
a. P46,800,000
b. P49,950,000
c. P52,116,000
d. P50,116,000
3. Preference share capital
a. P2,000,000
с. Р500,000
b. РО
d. P2,500,000
4. Share premium - preference shares
a. P2,500,000
b. P5,150,000
c. P2,000,000
d. PO

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