On July 1, 2018, Alaska Corp. issued 6,000 shares of its P 100 par ordinary share to Atty. Black as compensation for 1,000 hours of legal services performed during incorporation. Atty. Black usually bills P 500 per hour for legal services. On this date of issuance, the share was selling at a public trading at P 150 per share. By what amount should the Share Premium account of Alaska Corp. increase as a result of the issuance of those shares?
On July 1, 2018, Alaska Corp. issued 6,000 shares of its P 100 par ordinary share to Atty. Black as compensation for 1,000 hours of legal services performed during incorporation. Atty. Black usually bills P 500 per hour for legal services. On this date of issuance, the share was selling at a public trading at P 150 per share. By what amount should the Share Premium account of Alaska Corp. increase as a result of the issuance of those shares?
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 28E
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![On July 1, 2018, Alaska Corp. issued 6,000 shares of its P 100 par ordinary share to Atty. Black as
compensation for 1,000 hours of legal services performed during incorporation. Atty. Black usually bills
P 500 per hour for legal services. On this date of issuance, the share was selling at a public trading at P 150
per share. By what amount should the Share Premium account of Alaska Corp. increase as a result of the
issuance of those shares?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7c0a72d5-ac6d-43c1-83cd-c45acb0287f3%2F59e9aad3-12d4-4849-a34a-da18752836c1%2Fpcztgdf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On July 1, 2018, Alaska Corp. issued 6,000 shares of its P 100 par ordinary share to Atty. Black as
compensation for 1,000 hours of legal services performed during incorporation. Atty. Black usually bills
P 500 per hour for legal services. On this date of issuance, the share was selling at a public trading at P 150
per share. By what amount should the Share Premium account of Alaska Corp. increase as a result of the
issuance of those shares?
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