On the date of incorporation, the condensed balance sheet of Alom Partnership showed the following: Cash P 28,000 Other Assets 256,000 Liabilities 50,000 Alpha Capital 180,000 Omega Capital 54,000 The Securities and Exchange Commission authorized the corporation to issue the following shares: o 10,000 shares of 12% Preference Share Capital, par P 100; and o 20,000 shares of Ordinary Share Capital, par P 50. The corporation issued 1,500 preference shares and 800 ordinary shares to Alpha in exchange for her equity in the partnership. On the other hand, Omega received 1,500 preference shares and 1,200 ordinary shares for her equity in the partnership. Any capital deficiency of the partners will be paid in cash. Three other incorporators each subscribed at par, 1,500 preference shares and 2,000 ordinary shares paying only 25% of their subscriptions and the balance payable in two months from the date of subscription. How much is the total authorized share capital of the new corporation? a. 597,500 b. 750,000 c. 1,000,000 d. 2,000,000
On the date of incorporation, the condensed balance sheet of Alom Partnership showed the following: Cash P 28,000 Other Assets 256,000 Liabilities 50,000 Alpha Capital 180,000 Omega Capital 54,000 The Securities and Exchange Commission authorized the corporation to issue the following shares: o 10,000 shares of 12% Preference Share Capital, par P 100; and o 20,000 shares of Ordinary Share Capital, par P 50. The corporation issued 1,500 preference shares and 800 ordinary shares to Alpha in exchange for her equity in the partnership. On the other hand, Omega received 1,500 preference shares and 1,200 ordinary shares for her equity in the partnership. Any capital deficiency of the partners will be paid in cash. Three other incorporators each subscribed at par, 1,500 preference shares and 2,000 ordinary shares paying only 25% of their subscriptions and the balance payable in two months from the date of subscription. How much is the total authorized share capital of the new corporation? a. 597,500 b. 750,000 c. 1,000,000 d. 2,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
|
On the date of incorporation, the condensed
Cash P 28,000
Other Assets 256,000 Liabilities 50,000 Alpha Capital 180,000 Omega Capital 54,000 The Securities and Exchange Commission authorized the corporation to issue the following shares:
o 10,000 shares of 12%
o 20,000 shares of Ordinary Share Capital, par P 50. The corporation issued 1,500 preference shares and 800 ordinary shares to Alpha in exchange for her equity in the partnership. On the other hand, Omega received 1,500 preference shares and 1,200 ordinary shares for her equity in the partnership. Any capital deficiency of the partners will be paid in cash. Three other incorporators each subscribed at par, 1,500 preference shares and 2,000 ordinary shares paying only 25% of their subscriptions and the balance payable in two months from the date of subscription.
How much is the total authorized share capital of the new corporation? |
|
a.
|
597,500 |
|
b.
|
750,000 |
|
c.
|
1,000,000 |
|
d.
|
2,000,000 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education