II. (Two items) A-plus Asia Inc. was organized on January 1, 2007. It was authorized to issue 100,000 shares of ordinary shares capital, par value P20. The minimum required subscription was received at P25 per share. How many shares must be subscribed at the time of incorporation? How much of the subscriptions must be paid up?
II. (Two items) A-plus Asia Inc. was organized on January 1, 2007. It was authorized to issue 100,000 shares of ordinary shares capital, par value P20. The minimum required subscription was received at P25 per share. How many shares must be subscribed at the time of incorporation? How much of the subscriptions must be paid up?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:I. (Five items) A junior accountant of Rod Leny Corporation is seeking your assistance as to how to complete
the following shareholders' equity section of the balance sheet:
Shareholders' Equity:
Contributed Capital
5% Preference shares, par value per share, 15,000 shares authorized,
9,000 shares issued and outstanding
Ordinary shares, par value P 10 per share, 100,000 shares authorized,
shares issued and outstanding
Subscribed, 1,500 shares
Additional Paid-in Capital
- Excess over par - Preference shares
- Excess over par - Ordinary shares
Retained Earnings
Total Shareholders' Equity
Additional Information:
Undistributed earnings of the corporation is P 9,000. No dividends had ever been paid.
P 405,000
How many shares must be subscribed at the time of incorporation?
How much of the subscriptions must be paid up?
P 1,500,000
P 80,000
P 2,049,500
II. (Two items) A-plus Asia Inc. was organized on January 1, 2007. It was authorized to issue 100,000 shares
of ordinary shares capital, par value P20. The minimum required subscription was received at P25 per
share.
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