Merry Corporation issued 40,500 ordinary shares, par value P 18 in exchange for equipment. At the date of exchange, no market value is known for the equipment and stocks are selling at P23. What is the value of the equipment? Shown below is the information affecting shareholders' equity section of the Statement of Financial Position of RSB Corporation at the end of the current year: Share Capital 12% Preference Share Capital P50 par value authorized 20,000 shares Issued 360,000 Subscribed 180,000 P540,000 Ordinary Share Capital P50 par value authorized 40,000 shares Issued 500,000 Subscribed 70,000 P570,000 Reserves Share Premium - Preference 54,000 Share Premium - Ordinary 82,000 P136,000 Retained Earnings P200,000 Total Shareholders' Equity P1,446,000 Among the assets of the corporation appear the following items: Subscription Receivable - Preference P60,000 Subscription Receivable - Ordinary P30,000 Determine the total legal capital
Merry Corporation issued 40,500 ordinary shares, par value P 18 in exchange for equipment. At the date of exchange, no market value is known for the equipment and stocks are selling at P23. What is the value of the equipment? Shown below is the information affecting shareholders' equity section of the Statement of Financial Position of RSB Corporation at the end of the current year: Share Capital 12% Preference Share Capital P50 par value authorized 20,000 shares Issued 360,000 Subscribed 180,000 P540,000 Ordinary Share Capital P50 par value authorized 40,000 shares Issued 500,000 Subscribed 70,000 P570,000 Reserves Share Premium - Preference 54,000 Share Premium - Ordinary 82,000 P136,000 Retained Earnings P200,000 Total Shareholders' Equity P1,446,000 Among the assets of the corporation appear the following items: Subscription Receivable - Preference P60,000 Subscription Receivable - Ordinary P30,000 Determine the total legal capital
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Merry Corporation issued 40,500 ordinary shares, par value P 18 in exchange for equipment. At the date of exchange, no market value is known for the equipment and stocks are selling at
P23. What is the value of the equipment?
Shown below is the information affecting shareholders' equity section of the Statement of Financial Position of RSB Corporation at the end of the current year:
Share Capital
12% Preference Share Capital P50 par value authorized 20,000 shares
Issued 360,000
Subscribed 180,000 P540,000
Ordinary Share Capital P50 par value authorized 40,000 shares
Issued 500,000
Subscribed 70,000 P570,000
Reserves
Share Premium - Preference 54,000
Share Premium - Ordinary 82,000 P136,000
Retained Earnings P200,000
Total Shareholders' Equity P1,446,000
Among the assets of the corporation appear the following items:
Subscription Receivable - Preference P60,000
Subscription Receivable - Ordinary P30,000
Determine the total legal capital
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