On February 14, 2020 DAVID Co. issued 60,000 shares of its P100 par value ordinary shares and 40,000 shares of its PS0 par value preference shares for a total amount of 9,000,000. As of February 14, DAVID's ordinary shares were trading at P140 while its preference shares were selling at P90 per share. At what amount would the "Share Premium-Preference" account would increase as a result of the transaction? A. 250.000 B. 700.000 C. 1,521,739 D. 2,500,000 12. The Rexidel Corporation on November 1 had its Artides of Incorporation approved by the Philppine SEC. It Ahorized the company to isue 710,000 ordinary shares with P50 par value. On that date, five incorporators subscribed to 262,500 shares at par as folows No. ut Sihars Subseribed Tacoparatara ama Dawn paymant Oliver 45,000 P600,000 Marvin 60,000 750,000 Jay-ar 45,000 525,000 Haymond 75,000 900,000 Ramir 37,500 450,000 Hased on the above information, which of the follwing is incorrect? A. The incorporators total subscription amounted to PL3,125,000 which is more than 25% of the tutal amount of share capital. B. The total amount of paid-in capital should be at least P P3.281.250 C. The company is compliant with SECY requirements because the amount that should be paid by incorparators above is P2,341750 D. The company violates the minimum pre-incorporation subscription requirement.
On February 14, 2020 DAVID Co. issued 60,000 shares of its P100 par value ordinary shares and 40,000 shares of its PS0 par value preference shares for a total amount of 9,000,000. As of February 14, DAVID's ordinary shares were trading at P140 while its preference shares were selling at P90 per share. At what amount would the "Share Premium-Preference" account would increase as a result of the transaction? A. 250.000 B. 700.000 C. 1,521,739 D. 2,500,000 12. The Rexidel Corporation on November 1 had its Artides of Incorporation approved by the Philppine SEC. It Ahorized the company to isue 710,000 ordinary shares with P50 par value. On that date, five incorporators subscribed to 262,500 shares at par as folows No. ut Sihars Subseribed Tacoparatara ama Dawn paymant Oliver 45,000 P600,000 Marvin 60,000 750,000 Jay-ar 45,000 525,000 Haymond 75,000 900,000 Ramir 37,500 450,000 Hased on the above information, which of the follwing is incorrect? A. The incorporators total subscription amounted to PL3,125,000 which is more than 25% of the tutal amount of share capital. B. The total amount of paid-in capital should be at least P P3.281.250 C. The company is compliant with SECY requirements because the amount that should be paid by incorparators above is P2,341750 D. The company violates the minimum pre-incorporation subscription requirement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:11.
On February 14, 2020 DAVID Co. issued 60,000 shares of its P100 par value ordinary shares and 40,000 shares of its PS0 par value preference shares
for a total amount of P9,000,000. As of February 14, DAVID's ordinary shares were tradjing at P140 while its preference shares were selling at P90 per
share. At what amount would the "Share Premium-Preference" account would increase as a result of the transaction?
A.
250.000
B.
700.000
C.
1,521.739
D.
2,500,000
12.
The Rexidel Corporation on November 1 had its Artices of Incorporation approved by the Philippine SEC. It Ahorized the company to isue 750,000
ordinary shares with PS0 par velue. On that date, five incorporators subscribed to 262,500 shares at par as follows:
No. ut Shares Subscribud
Tacorporatars iame
Dawn paymant
Oliver
45,000
P600,000
Marvin
60,000
750,000
Jay-ar
45,000
525,000
Haymond
75,000
900,000
Ramir
37,500
450,000
Hased on the above information, which of the fallowing is incorrect?
A.
The incorporators tatal subscription amounted to PI3,125,000 whch is more than 25% of the total amount of share capital.
B.
The total amount of paid-in capital should be at least P3.28125
C.
The company is compliant with SECY requirements because the amount that should be paid by incorporators above is P2,341.750.
D.
The company violates the minimum pre-incorporation subscription requirement.
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