Please give solutions and explanation to the three questions. The correct answer is already given, just provide me with solution. "Oh Corporation had the following shareholders equity accounts before the declaration of bonus issue: Ordinary share capital, P100 par, 20,000 shares issued and outstanding P2,000,000; Share premium ordinary P100,000; Retained earnings P1,000,000. The fair market value of ordinary shares on this date is P150 per share. Assuming a 10% bonus issue was declared, what amount of retained earnings will be capitalized?" Answer: "P300,000" "Oh Corporation had the following shareholders equity accounts before the declaration of bonus issue: Ordinary share capital, P100 par, 20,000 shares issued and outstanding P2,000,000; Share premium ordinary P100,000; Retained earnings P1,000,000. The fair market value of ordinary shares on this date is P150 per share. Assuming a 20% bonus issue was declared, what amount of retained earnings will be capitalized?" Answer: "P400,000" "The following are found in the trial balance of M Corporation at December 31, 2021: Authorized ordinary share, P50 par value P3,000,000; Subscription receivable P200,000; Unissued ordinary share P1,000,000; Subscribed ordinary share P500,000; Share premium ordinary P100,000. What is the total number of shares available for subscription?" Answer: "10,000 shares"

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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Please give solutions and explanation to the three questions. The correct answer is already given, just provide me with solution.

"Oh Corporation had the following shareholders equity accounts before the declaration of bonus issue: Ordinary share capital, P100 par, 20,000 shares issued and outstanding P2,000,000; Share premium ordinary P100,000; Retained earnings P1,000,000. The fair market value of ordinary shares on this date is P150 per share. Assuming a 10% bonus issue was declared, what amount of retained earnings will be capitalized?"

Answer:

"P300,000"

"Oh Corporation had the following shareholders equity accounts before the declaration of bonus issue: Ordinary share capital, P100 par, 20,000 shares issued and outstanding P2,000,000; Share premium ordinary P100,000; Retained earnings P1,000,000. The fair market value of ordinary shares on this date is P150 per share. Assuming a 20% bonus issue was declared, what amount of retained earnings will be capitalized?"

Answer:

"P400,000"

"The following are found in the trial balance of M Corporation at December 31, 2021: Authorized ordinary share, P50 par value P3,000,000; Subscription receivable P200,000; Unissued ordinary share P1,000,000; Subscribed ordinary share P500,000; Share premium ordinary P100,000. What is the total number of shares available for subscription?"

Answer: "10,000 shares"

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