Item No. 3 is based on the following information:Howing ledLeon Corporation sold 500 shares of its P 40 par value preference sharesfor cash at P 50 per share.3. In recording this transaction, there would be a:23510HD 3a.Credit to Preference Share Capital for P 20,000.b. Credit to Preference Share Capital for P 25,000.open no bsand 21 I.oM mattCredit to Preference Share Capital in Excess of Stated Value for P 5,000.C.d. Credit to Subscribed Preference Share Capital for P 20,000.

Preference share capital includes such capital which is given preference in respect of receipt of…

Leon Corporation sold 500 shares of its P 40 par value preference shares for cash at P 50 per share. 3. In recording this transaction, there would be a: a. Credit to Preference Share Capital for P 20,000. b. Credit to Preference Share Capital for P 25,000. fors Credit to Preference Share Capital in Excess of Stated Value for P 5,000. al to matt C. d. Credit to Subscribed Preference Share Capital for P 20,000.

Leon Corporation sold 500 shares of its P 40 par value preference shares for cash at P 50 per share. 3. In recording this transaction, there would be a: a. Credit to Preference Share Capital for P 20,000. b. Credit to Preference Share Capital for P 25,000. fors Credit to Preference Share Capital in Excess of Stated Value for P 5,000. al to matt C. d. Credit to Subscribed Preference Share Capital for P 20,000.

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. 3 is based on the following information:
Howing led
Leon Corporation sold 500 shares of its P 40 par value preference shares
for cash at P 50 per share.
3. In recording this transaction, there would be a:
23510HD 3
a.
Credit to Preference Share Capital for P 20,000.
b. Credit to Preference Share Capital for P 25,000.
open no bsand 21 I.oM matt
Credit to Preference Share Capital in Excess of Stated Value for P 5,000.
C.
d. Credit to Subscribed Preference Share Capital for P 20,000.

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