VIOLET Corporation was incorporated on January 1, 2020 with the following authorized capitalization: (a) 40,000 ordinary shares, no par value, stated value P40 per share (b) 10,000 shares of 5% cumulative preference share, par value P10 per share. During 2020, Violet issued 24,000 ordinary shares for a total consideration of P1,200,000 and 6,000 preference share at P16 per share. In addition, on December 19, 2020, subscriptions for 2,000 preference shares were taken at a purchase price of P17. These subscribed shares were paid for on January 2, 2021. What should Violet report as total contributed capital in its December 31, 2020 statement of financial position?

VIOLET Corporation was incorporated on January 1, 2020 with the following authorized capitalization: (a) 40,000 ordinary shares, no par value, stated value P40 per share (b) 10,000 shares of 5% cumulative preference share, par value P10 per share. During 2020, Violet issued 24,000 ordinary shares for a total consideration of P1,200,000 and 6,000 preference share at P16 per share. In addition, on December 19, 2020, subscriptions for 2,000 preference shares were taken at a purchase price of P17. These subscribed shares were paid for on January 2, 2021. What should Violet report as total contributed capital in its December 31, 2020 statement of financial position?

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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