ginning of curr with the follow lative preferenc a value P12, aut areş, P1,000,000
ginning of curr with the follow lative preferenc a value P12, aut areş, P1,000,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...
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Question
![Problem 18-21 (AICPA Adapted)
At the beginning of current year, Trojan Company was
organized with the following capital structure:
10% cumulative preference share capital, par. value P10,
liquidation value P12, authorized, issued and outstanding
100,000 shares, P1,000,000.
Ordinary share capital, par value P100, authorized 40,000
shares, issued and outstanding 30,000 shares, P3,000,000.
The net income for the current year was P6,000,000 and
no dividends were declared.
1. What amount should be reported as book value per
odinary share?
а. 290
b. 293
с. 300
d. 333
2. What amount should be reported as book vålue per
preference share?
а. 100
b. 130
c. 110
d. 120](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9e1443fd-158c-471a-8fb4-fb98bff1e339%2F4e1b40a2-e9dc-47c5-b97b-356727fdd976%2Fxwy4vf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 18-21 (AICPA Adapted)
At the beginning of current year, Trojan Company was
organized with the following capital structure:
10% cumulative preference share capital, par. value P10,
liquidation value P12, authorized, issued and outstanding
100,000 shares, P1,000,000.
Ordinary share capital, par value P100, authorized 40,000
shares, issued and outstanding 30,000 shares, P3,000,000.
The net income for the current year was P6,000,000 and
no dividends were declared.
1. What amount should be reported as book value per
odinary share?
а. 290
b. 293
с. 300
d. 333
2. What amount should be reported as book vålue per
preference share?
а. 100
b. 130
c. 110
d. 120
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