On My Own Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares of 8% preference shares, P130 par value, and 150,000 shares of ordinary shares, P70 par value. Transactions for the year were as follows: · Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash · Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair market value of P400,000 · May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment were received. How much is the legal capital at the end of the year 2021? P5,755,000 P4,225,000 P3,500,000 P4,760,000
On My Own Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares of 8% preference shares, P130 par value, and 150,000 shares of ordinary shares, P70 par value. Transactions for the year were as follows: · Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash · Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair market value of P400,000 · May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment were received. How much is the legal capital at the end of the year 2021? P5,755,000 P4,225,000 P3,500,000 P4,760,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On My Own Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares of 8% preference shares , P130 par value, and 150,000 shares of ordinary shares, P70 par value. Transactions for the year were as follows:
· Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash
· Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair market value of P400,000
· May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment were received.
How much is the legal capital at the end of the year 2021?
· Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash
· Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair market value of P400,000
· May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment were received.
How much is the legal capital at the end of the year 2021?
P5,755,000
P4,225,000
P3,500,000
P4,760,000
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