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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer number 13, 14 and 15. Show complete solution.
Transcribed Image Text:13. What is the par value of the share and how many
shares were issued?
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.
G.
14. What is the increase in additional paid in capital of
Smart as a result of the foregoing issuance of shares?
Global Company exchanges a piece of equipment for 4,000 shares of
International Company's ordinary share capital that has a P100 par value.
DE The equipment cost Global P1,000,000 when purchased five years ago, and
currently has a fair value of P560,000. The equipment has a recorded
accumulated depreciation of P550,000 in the books of Global.
H.
15. What is the amount credited to Share Premium
Ordinary as a result of this exchange?
Transcribed Image Text:F.
Fortune Company prepared this journal entry on June 30, 2018:
Cash
140,000
Ordinary Share Capital
Share Premium - Ordinary
Issued ordinary shares at P140 per share.
130,000
10,000
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