On January 1, 2020, Parent Company issued 10,000 shares of its PS par ordinary share capital for all the 5,000 issued and outstanding shares of Subsidiary Company's P1 par share capital The market value of the share was P10. Parent also incurred acquisition related cost amounting to P20,000 including cost of issuing and registering new shares of P10,000. On this date, the shareholder's equity of Subsidiary was: Ordinary Share Capital - 5,000; Paid-in Capital in excess of par-30,000; and Retained Earnings - 50,000. The journal entry to record the business combination should include: A. Debit of 20,000 to the Business Combination Expenses B. Debit of 50,000 to the Ordinary Share Capital C. Debit of 10,000 to the Share Premium D. Credit of 100,000 to the Ordinary Share Capital
On January 1, 2020, Parent Company issued 10,000 shares of its PS par ordinary share capital for all the 5,000 issued and outstanding shares of Subsidiary Company's P1 par share capital The market value of the share was P10. Parent also incurred acquisition related cost amounting to P20,000 including cost of issuing and registering new shares of P10,000. On this date, the shareholder's equity of Subsidiary was: Ordinary Share Capital - 5,000; Paid-in Capital in excess of par-30,000; and
A. Debit of 20,000 to the Business Combination Expenses
B. Debit of 50,000 to the Ordinary Share Capital
C. Debit of 10,000 to the Share Premium
D. Credit of 100,000 to the Ordinary Share Capital
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