The Silver Ray Corporation was organized on January 1, 2018 with authorized share capital consisting of 50,000 preference shares with a par value of P 50 and 1,000,000 of no-par ordinary shares with a stated value of P 10 per share. At December 31, 2018, the ledger included the following balances pertaining to shareholders’ equity. Preference Share Capital P 1,000,000 Preference Share Premium 120,000 Ordinary Share Capital 3,000,000 Ordinary Share Capital in Excess of Stated Value 4,500,000 10,000 preference shares were issued in exchange for equipment having a fair value of P 550,000. The remaining preference shares were issued for cash. All ordinary shares were issued for cash. Required: Compute for the following: a) Number of preference shares issued for cash b) Price per share of preference share capital issued for cash c) Number of ordinary shares issued d) Average price per share of the ordinary share capital issued for cash e) Total preference share premium arising from issuance in
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The Silver Ray Corporation was organized on January 1, 2018 with authorized share capital consisting of 50,000 preference shares with a par value of P 50 and 1,000,000 of no-par ordinary shares with a stated value of P 10 per share. At December 31, 2018, the ledger included the following balances pertaining to shareholders’ equity. |
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P 1,000,000 |
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Preference Share Premium |
120,000 |
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Ordinary Share Capital |
3,000,000 |
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Ordinary Share Capital in Excess of Stated Value |
4,500,000 |
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10,000 preference shares were issued in exchange for equipment having a fair value of P 550,000. The remaining preference shares were issued for cash. All ordinary shares were issued for cash.
Required: Compute for the following: a) Number of preference shares issued for cash b) Price per share of preference share capital issued for cash c) Number of ordinary shares issued d) Average price per share of the ordinary share capital issued for cash e) Total preference share premium arising from issuance in exchange for equipment. |
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