Pico Company was organized on January 1, 2015 with authorized capital of 100,000 sharesof P200 par value. During 2015, Pico had the following transactions affecting stockholders'equity:Issued 25,000 shares at P220 a shareJanuary 10March 25Issued 1,000 shares for legal services when the fair value was P240 ashareSeptember 30Issued 5,000 shares for a tract of land when the fair value was P260 ashare.What amount should Pico report as additional paid in capital at December 31, 2015?O A. 840,000OB. 800,000OC. 540,000O D. 500,000

The share premium is the amount received in excess of par value of shares issued.

Pico Company was organized on January 1, 2015 with authorized capital of 100,000 shar of P200 par value. During 2015, Pico had the following transactions affecting stockholde equity: January 10 March 25 Issued 25,000 shares at P220 a share Issued 1,000 shares for legal services when the fair value was P240 a share September 30 Issued 5,000 shares for a tract of land when the fair value was P260 a share. What amount should Pico report as additional paid in capital at December 31, 2015? OA. 840,000 OB. 800,000 O C. 540,000 O D. 500,000

Pico Company was organized on January 1, 2015 with authorized capital of 100,000 shar of P200 par value. During 2015, Pico had the following transactions affecting stockholde equity: January 10 March 25 Issued 25,000 shares at P220 a share Issued 1,000 shares for legal services when the fair value was P240 a share September 30 Issued 5,000 shares for a tract of land when the fair value was P260 a share. What amount should Pico report as additional paid in capital at December 31, 2015? OA. 840,000 OB. 800,000 O C. 540,000 O D. 500,000

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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