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Upon knowing that a partnership can now form a corporation, Serafin Mascariñas and Elena Alpuerto who were partners in a successful ventures have decided to incorporate their business. The corporation was authorized by its charter to issue 20,000 ordinary shares with a par value of P50. Each incorporator has subscribed 5,000 shares and made payment of P90,000 and P100,000 respectively which the corporate treasurer deposited right away to the bank. Transactions during the month of May 20A follow: 3 - Withdrew P10,000 in payment for incorporation fees, legal services and other incidental expenses incurred in the process of incorporation.

Upon knowing that a partnership can now form a corporation, Serafin Mascariñas and Elena Alpuerto who were partners in a successful ventures have decided to incorporate their business. The corporation was authorized by its charter to issue 20,000 ordinary shares with a par value of P50. Each incorporator has subscribed 5,000 shares and made payment of P90,000 and P100,000 respectively which the corporate treasurer deposited right away to the bank. Transactions during the month of May 20A follow: 3 - Withdrew P10,000 in payment for incorporation fees, legal services and other incidental expenses incurred in the process of incorporation.

FINANCIAL ACCOUNTING
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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Upon knowing that a partnership can now form a corporation, Serafin Mascariñas and Elena Alpuerto who were partners in a successful ventures have decided to incorporate their business. The corporation was authorized by its charter to issue 20,000 ordinary shares with a par value of P50. Each incorporator has subscribed 5,000 shares and made payment of P90,000 and P100,000 respectively which the corporate treasurer deposited right away to the bank. Transactions during the month of May 20A follow: 3 - Withdrew P10,000 in payment for incorporation fees, legal services and other incidental expenses incurred in the process of incorporation. 15 17 . P350,000 a. b. P360,000 Q-4 24- Collected 70% of Mr. Vicente Chotangco Jr.'s subscription balance and was issued a certificate. Q-1 How much was the cash in bank balance at the end of its first month of operation? c. P380,000 d. P390,000 Q-2 How much was the balance of "share premium" account? a. P30,000 b. P32,000 Mr. Vicente Chotangco subscribed 2,000 shares at P65 and made down payment of 30%. Issued 1,000 shares for cash to Cherrylyn Limbago at par value and was issued a share certificate. c. P35,000 d. P35,500 Q-3 How much was the balance of the "Unissued share capital account"? a. P135,000 b. P850,000 c. P170,000 d. P180,000 How many shares were "Issued and Outstanding"? 2,500 shares a. b. 3,000 shares c. 3,200 shares d. 4,000 shares
Transcribed Image Text:Upon knowing that a partnership can now form a corporation, Serafin Mascariñas and Elena Alpuerto who were partners in a successful ventures have decided to incorporate their business. The corporation was authorized by its charter to issue 20,000 ordinary shares with a par value of P50. Each incorporator has subscribed 5,000 shares and made payment of P90,000 and P100,000 respectively which the corporate treasurer deposited right away to the bank. Transactions during the month of May 20A follow: 3 - Withdrew P10,000 in payment for incorporation fees, legal services and other incidental expenses incurred in the process of incorporation. 15 17 . P350,000 a. b. P360,000 Q-4 24- Collected 70% of Mr. Vicente Chotangco Jr.'s subscription balance and was issued a certificate. Q-1 How much was the cash in bank balance at the end of its first month of operation? c. P380,000 d. P390,000 Q-2 How much was the balance of "share premium" account? a. P30,000 b. P32,000 Mr. Vicente Chotangco subscribed 2,000 shares at P65 and made down payment of 30%. Issued 1,000 shares for cash to Cherrylyn Limbago at par value and was issued a share certificate. c. P35,000 d. P35,500 Q-3 How much was the balance of the "Unissued share capital account"? a. P135,000 b. P850,000 c. P170,000 d. P180,000 How many shares were "Issued and Outstanding"? 2,500 shares a. b. 3,000 shares c. 3,200 shares d. 4,000 shares
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