Problem 3. Atty. Richard Opinion has done a lot in the forming of Farmingstone, Inc. The Articles of incorporation showed that the corporation has an authorized ordinary share capital of P10,000,000 with an equivalent share of 50,000. Farmingstone is to issue 250 shares at par value for the services of the lawyer. Record the following transactions assuming: 1) The services of Atty. Opinion is valued at P60,000. 2) No known value of the services instead the fair value of ordinary share is determined to be P250. 3) There is no known value for both services rendered and the ordinary share capital Issued.

Problem 3. Atty. Richard Opinion has done a lot in the forming of Farmingstone, Inc. The Articles of incorporation showed that the corporation has an authorized ordinary share capital of P10,000,000 with an equivalent share of 50,000. Farmingstone is to issue 250 shares at par value for the services of the lawyer. Record the following transactions assuming: 1) The services of Atty. Opinion is valued at P60,000. 2) No known value of the services instead the fair value of ordinary share is determined to be P250. 3) There is no known value for both services rendered and the ordinary share capital Issued.

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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