Problem On Janury 1, 20g1, Negros Company was incorporated wi the llewing authorind capitaliaation 2000.000 10.000000 Onn Pe share pital to P par During the current year, the entity iseued 150,000 ordiar hares ratetal ef PIR000.000 and s0,000 preferene shas at P0 per ahare Orliary shareagital e par. PI00 tated value ln addition, on December 15, 201. ubecriptions for 20.000 preference shares were received at PI00 per ahare. The haribed preference aheres were paid for on Janary 15 Net income for 2021 was PS.000,000 What amount should be reported as ledal contributed capital e December 1, 2017 2000,000 21,000.000 21.000.000 25000.000

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is