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Prior to subscription of Color, the accounting equation of Rado’s corporation is: Asset = Liabilities + Equity P1,000,000 P 250,000 P 750,000 Color subscribed 2,500 shares at P100 par that will be due and collectible 18 months from December 31, 200B, the balance sheet date of Rado. After subscription of Color, the accounting equation of Rado would be Total Assets Total Liabilities Stockholders equity a. P1,250,000 P250,000 P1,000,000 b. P1,250,000 P500,000 P 750,000 c. P1,000,000 P250,000 P 750,000 d. P1,000,000 P500,000 P 750000

Prior to subscription of Color, the accounting equation of Rado’s corporation is: Asset = Liabilities + Equity P1,000,000 P 250,000 P 750,000 Color subscribed 2,500 shares at P100 par that will be due and collectible 18 months from December 31, 200B, the balance sheet date of Rado. After subscription of Color, the accounting equation of Rado would be Total Assets Total Liabilities Stockholders equity a. P1,250,000 P250,000 P1,000,000 b. P1,250,000 P500,000 P 750,000 c. P1,000,000 P250,000 P 750,000 d. P1,000,000 P500,000 P 750000

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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Prior to subscription of Color, the accounting equation of Rado’s corporation is:
Asset
=
Liabilities
+
Equity

P1,000,000

P 250,000

P 750,000

Color subscribed 2,500 shares at P100 par that will be due and collectible 18 months from December 31, 200B, the balance sheet date of Rado. After subscription of Color, the accounting equation of Rado would be

Total Assets
Total Liabilities
Stockholders  equity

a.
P1,250,000
P250,000
P1,000,000

b.
P1,250,000
P500,000
P   750,000

c.
P1,000,000
P250,000
P   750,000

d.
P1,000,000
P500,000
P    750000

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