On June 1, Smart Company issued 8,000 shares of its P100 par ordinary share capital to Dix for a tract of land. The shares were actively traded in the stock exchange at P180 per share. On Dix's last property tax bill, the land had an assessed value of P1,000,000.

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.