VIOLET Corporation was incorporated on January 1, 2020 with the following authorized capitalization: (a) 40,000 ordinary shares, no par value, stated value ₱40 per share (b) 10,000 shares of 5% cumulative preference share, par value ₱10 per share. During 2020, Violet issued 24,000 ordinary shares for a total consideration of ₱1,200,000 and 6,000 preference share at ₱16 per share. In addition, on December 19, 2020, subscriptions for 2,000 preference shares were taken at a purchase price of ₱17. These subscribed shares were paid for on January 2, 2021. How much share premium is to be reported for the year ended, December 31, 2020?
VIOLET Corporation was incorporated on January 1, 2020 with the following authorized capitalization: (a) 40,000 ordinary shares, no par value, stated value ₱40 per share (b) 10,000 shares of 5% cumulative preference share, par value ₱10 per share. During 2020, Violet issued 24,000 ordinary shares for a total consideration of ₱1,200,000 and 6,000 preference share at ₱16 per share. In addition, on December 19, 2020, subscriptions for 2,000 preference shares were taken at a purchase price of ₱17. These subscribed shares were paid for on January 2, 2021. How much share premium is to be reported for the year ended, December 31, 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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VIOLET Corporation was incorporated on January 1, 2020 with the following authorized capitalization: (a) 40,000 ordinary shares, no par value, stated value ₱40 per share (b) 10,000 shares of 5% cumulative
Transcribed Image Text: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. How
much share premium is to be reported for the year ended, December 31,
2020?
*
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