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Papaya Corporation issued its 3,000 ordinary shares in exchange for land which has a fair market value of P350,000. The par value per share is P100 while the market value per share is P120. Q-23 - How much amount of share premium that Papaya Corporation should recognize? c) P60,000 a) P20,000 b) P50,000 d) P70,000

Papaya Corporation issued its 3,000 ordinary shares in exchange for land which has a fair market value of P350,000. The par value per share is P100 while the market value per share is P120. Q-23 - How much amount of share premium that Papaya Corporation should recognize? c) P60,000 a) P20,000 b) P50,000 d) P70,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7-7 Papaya Corporation issued its 3,000 ordinary shares in exchange for land which has a fair market value of P350,000. The par value per share is P100 while the market value per share is P120. Q-23 - How much amount of share premium that Papaya Corporation should recognize? a) P20,000 P50,000 c) P60,000 d) P70,000 b) 7-8 Melon Corporation issued its 1,000 ordinary shares for legal services in forming the said corporation. The par value per share is P100 and the fair market value is P130. The cost of the services is not known. Q-24 How much would be debited to legal expenses? a) P100,000 b) P130,000 7-9 The account below appears in the December 31, 20A trial balance of Metro Cagayan Sales Corporation: Authorized Ordinary Share Unissued Ordinary Share Subscribed Ordinary Share Subscription Receivable-Ordinary Share Premium a) P4,900,000 b) P5,100,000 c) P140,000 d) P150,000 Accumulated Profits (Losses) Unappropriated Accumulated Profits (Losses) Appropriated Treasury Share at Cost P5,000,000 2,000,000 1,000,000 400,000 500,000 c) F5,500.000 .) PS,600,000 600,000 300,000 Q-25 In its December 31,20A Balance Sheet, Metro Cagayan Sales Corporation should report total shareholders' equity of- 100,000
Transcribed Image Text:7-7 Papaya Corporation issued its 3,000 ordinary shares in exchange for land which has a fair market value of P350,000. The par value per share is P100 while the market value per share is P120. Q-23 - How much amount of share premium that Papaya Corporation should recognize? a) P20,000 P50,000 c) P60,000 d) P70,000 b) 7-8 Melon Corporation issued its 1,000 ordinary shares for legal services in forming the said corporation. The par value per share is P100 and the fair market value is P130. The cost of the services is not known. Q-24 How much would be debited to legal expenses? a) P100,000 b) P130,000 7-9 The account below appears in the December 31, 20A trial balance of Metro Cagayan Sales Corporation: Authorized Ordinary Share Unissued Ordinary Share Subscribed Ordinary Share Subscription Receivable-Ordinary Share Premium a) P4,900,000 b) P5,100,000 c) P140,000 d) P150,000 Accumulated Profits (Losses) Unappropriated Accumulated Profits (Losses) Appropriated Treasury Share at Cost P5,000,000 2,000,000 1,000,000 400,000 500,000 c) F5,500.000 .) PS,600,000 600,000 300,000 Q-25 In its December 31,20A Balance Sheet, Metro Cagayan Sales Corporation should report total shareholders' equity of- 100,000
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