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?
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 9EB: Vishnu Company is authorized to issue 500,000 shares of $2 par value common stock. In conjunction...
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![I.
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%2F70c078fb-9d78-4a3b-953b-a0dedb72b4f4%2Fd83872a7-84ab-4259-9319-507687e5ba00%2Fn94a9fp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:I.
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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