Problem1: The Ianey Corporation is authorized to issue 120,000 shares of P 220 par value ordinary share capital. Ianey has the following transactions during the month: * Issued 24,200 shares at par, receiving cash. * Issued 320 shares to attorneys for services in securing the corporate charter and for preliminary legal costs of organizing the corporation. The value of the service was P 85,500. * Issued 15,600 ordinary shares in exchange for a land and a building with fair market values of P 1,320,000 and P 2,780,000, respectively. * Received cash for 8,200 ordinary shares sold at P 310 per share. Questions: 1. What is the amount that is to be reported as Ordinary share capital in the statement of financial position? 2. What is the amount that is to be reported as Share premium - ordinary share in the statement of financial position?
Problem1: The Ianey Corporation is authorized to issue 120,000 shares of P 220 par value ordinary share capital. Ianey has the following transactions during the month: * Issued 24,200 shares at par, receiving cash. * Issued 320 shares to attorneys for services in securing the corporate charter and for preliminary legal costs of organizing the corporation. The value of the service was P 85,500. * Issued 15,600 ordinary shares in exchange for a land and a building with fair market values of P 1,320,000 and P 2,780,000, respectively. * Received cash for 8,200 ordinary shares sold at P 310 per share. Questions: 1. What is the amount that is to be reported as Ordinary share capital in the statement of financial position? 2. What is the amount that is to be reported as Share premium - ordinary share in the statement of financial position?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem1:
The Ianey Corporation is authorized to issue 120,000 shares of P 220 par value ordinary share capital.
Ianey has the following transactions during the month:
* Issued 24,200 shares at par, receiving cash.
* Issued 320 shares to attorneys for services in securing the corporate charter and for preliminary
legal costs of organizing the corporation. The value of the service was P 85,500.
* Issued 15,600 ordinary shares in exchange for a land and a building with fair market values of P
1,320,000 and P 2,780,000, respectively.
* Received cash for 8,200 ordinary shares sold at P 310 per share.
Questions:
1. What is the amount that is to be reported as Ordinary share capital in the statement of
financial position?
2. What is the amount that is to be reported as Share premium - ordinary share in the statement
of financial position?
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