Item No. 4 is based on the following information: Luningning Corporation sold for cash 400 preference shares with a par value of P 50 per share at P56 per share. Also, 600 ordinary shares with no par value but with stated value of P 100 per share were sold for P 102 per share. 4. What would be the effect of the transaction on the total Share Premium account? a. PO. C. P 2,400. b. P 1,200. d. P 3,600.

Item No. 4 is based on the following information: Luningning Corporation sold for cash 400 preference shares with a par value of P 50 per share at P56 per share. Also, 600 ordinary shares with no par value but with stated value of P 100 per share were sold for P 102 per share. 4. What would be the effect of the transaction on the total Share Premium account? a. PO. C. P 2,400. b. P 1,200. d. P 3,600.

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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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Item No. 4 is based on the following information:
nysg bns n
Luningning Corporation sold for cash 400 preference shares with a par
value of P 50 per share at P56 per share. Also, 600 ordinary shares with no par
value but with stated value of P 100 per share were sold for P 102 per share.
4. What would be the effect of the transaction on the total Share Premium
account?
a. PO.
C.
P 2,400.
b. P 1,200.
d.
P 3,600.

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