The condensed balance sheet of Adams & Gray, a partnership at December 31, 2008, follows: Current assets 250,000 Equipment (net) 30,000 Liabilities 20,000 Adams, capital Gray, capital 160,000 100,000 On December 31, 2008, the fair values of the assets and liabilities were appraised at P240,000 and P20,000, respectively, by an independent appraiser. On January 2, 2009, the partnership was incorporated and 1,000 shares of P5 par value common stock were issued. Immediately after the incorporation, what amount should the new corporation report as share premium?

The condensed balance sheet of Adams & Gray, a partnership at December 31, 2008, follows: Current assets 250,000 Equipment (net) 30,000 Liabilities 20,000 Adams, capital Gray, capital 160,000 100,000 On December 31, 2008, the fair values of the assets and liabilities were appraised at P240,000 and P20,000, respectively, by an independent appraiser. On January 2, 2009, the partnership was incorporated and 1,000 shares of P5 par value common stock were issued. Immediately after the incorporation, what amount should the new corporation report as share premium?

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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