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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
160,000
Gray, capital
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?
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