Problem 4 Elegant Co. was organized on Jan. 1, 2022. On that date, it issued 1,000,000 shares of P1.00 par value ordinary stock at P1.50 per share (2,000,000 shares were authorized). During the year: (a) Elegant received various subscriptions totaling 500,000 shares for 30% down at P1.25 per share; (b) It was able to collect P400,000 of the subscriptions; (c) From the subscriptions, it had issued 450,000 shares. uestions: Assume that the remaining shares were declared delinquent and were sold in a public auction incurring P10,000 nd there were three bidders with the following bids: Jane, 45,000; Jhen, 48,000; Jun, 44,000, who is the highest bidder? Assume that the remaining shares were declared delinquent and were sold in a public auction curring P10,000. What is the total amount paid by the highest bidder? Assume that the remaining shares were declared delinquent and were sold in a public auction curring P10,000. How many shares will the highest bidder receive when the stocks are issued?
Problem 4 Elegant Co. was organized on Jan. 1, 2022. On that date, it issued 1,000,000 shares of P1.00 par value ordinary stock at P1.50 per share (2,000,000 shares were authorized). During the year: (a) Elegant received various subscriptions totaling 500,000 shares for 30% down at P1.25 per share; (b) It was able to collect P400,000 of the subscriptions; (c) From the subscriptions, it had issued 450,000 shares. uestions: Assume that the remaining shares were declared delinquent and were sold in a public auction incurring P10,000 nd there were three bidders with the following bids: Jane, 45,000; Jhen, 48,000; Jun, 44,000, who is the highest bidder? Assume that the remaining shares were declared delinquent and were sold in a public auction curring P10,000. What is the total amount paid by the highest bidder? Assume that the remaining shares were declared delinquent and were sold in a public auction curring P10,000. How many shares will the highest bidder receive when the stocks are issued?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Problem 4
Elegant Co. was organized on Jan. 1, 2022. On that date, it issued 1,000,000 shares of P1.00 par value
ordinary stock at P1.50 per share (2,000,000 shares were authorized). During the year:
(a) Elegant received various subscriptions totaling 500,000 shares for 30% down at P1.25 per share;
(b) It was able to collect P400,000 of the subscriptions;
(c) From the subscriptions, it had issued 450,000 shares.
Questions:
4. Assume that the remaining shares were declared delinquent and were sold in a public auction incurring P10,000
and there were three bidders with the following bids: Jane, 45,000; Jhen, 48,000; Jun, 44,000, who is the highest bidder?
5. Assume that the remaining shares were declared delinquent and were sold in a public auction
incurring P10,000. What is the total amount paid by the highest bidder?
6. Assume that the remaining shares were declared delinquent and were sold in a public auction
incurring P10,000. How many shares will the highest bidder receive when the stocks are issued?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education