Item No. 8 is based on the following information: sidsy69 2970 000,001 9 Whistleblow, Inc. issued 500 ordinary shares with a par value of P 24 per share to a lawyer for the latter's legal services. The shares were in payment for the 100 hours rendered by the lawyer who billed the company P 160 per hour. On the date of share issuance, the shares were trading in the stock exchange at P 32 per share.
Item No. 8 is based on the following information: sidsy69 2970 000,001 9 Whistleblow, Inc. issued 500 ordinary shares with a par value of P 24 per share to a lawyer for the latter's legal services. The shares were in payment for the 100 hours rendered by the lawyer who billed the company P 160 per hour. On the date of share issuance, the shares were trading in the stock exchange at P 32 per share.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 5MCQ
Related questions
Question
![Item No. 8 is based on the following information:
sid
000,001 9
Whistleblow, Inc. issued 500 ordinary shares with a par value of P 24 per share
to a lawyer for the latter's legal services. The shares were in payment for the
100 hours rendered by the lawyer who billed the company P 160 per hour. On
the date of share issuance, the shares were trading in the stock exchange at
P 32 per share.
1 000.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9b2efc87-79a1-46c3-82cd-03aa0e5ee75b%2F1096ca19-a2ce-4553-9d33-8c9164daee0f%2Fbv7md1c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Item No. 8 is based on the following information:
sid
000,001 9
Whistleblow, Inc. issued 500 ordinary shares with a par value of P 24 per share
to a lawyer for the latter's legal services. The shares were in payment for the
100 hours rendered by the lawyer who billed the company P 160 per hour. On
the date of share issuance, the shares were trading in the stock exchange at
P 32 per share.
1 000.00
![8. The journal entry to record the foregoing transaction would be: a
a. Organization Expense
P 12,000
Ordinary Share Capital
diw
b. Organization Expense
P 16,000
Ordinary Share Capital
Cash ----
c. Organization Expense
P 16,000
Ordinary Share Capital
Ordinary Share Premium
P 16,000
d. Organization Expense
Ordinary Share Capital
P 12,000
P 12,000
4,000
a
P 12,000
4,000
P 16,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9b2efc87-79a1-46c3-82cd-03aa0e5ee75b%2F1096ca19-a2ce-4553-9d33-8c9164daee0f%2Fnn6or1r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:8. The journal entry to record the foregoing transaction would be: a
a. Organization Expense
P 12,000
Ordinary Share Capital
diw
b. Organization Expense
P 16,000
Ordinary Share Capital
Cash ----
c. Organization Expense
P 16,000
Ordinary Share Capital
Ordinary Share Premium
P 16,000
d. Organization Expense
Ordinary Share Capital
P 12,000
P 12,000
4,000
a
P 12,000
4,000
P 16,000
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