XXX Corporation was organized on January5, 2023. The authorized capital stock of preference consists of 20,000 preference shares with par value of P100 per share and the authorized capital stock of ordinary consist of 100,000 no par value ordinary shares with stated value of P50. On December 31, 2023, the ledger included the following balances: • Share Capital Preference = P600,000 Share Capital Ordinary = P2,000,000 Subscribed Share Capital Ordinary = P 500,000 ⚫Subscription Receivable Ordinary P250,000 Share Premium Preference = P90,000 Share Premium Ordinary = P300,000 ⚫Retained Earnings = 100,000 Additional Information: 1. 2,000 shares of preference were issued for brand new equipment with fair market value of P220,000. The remaining preference shares were issued for cash. There is no subscription receivable. 2. All ordinary shares were issued for cash. There is subscription receivable for ordinary shares. How much is the average premium per share of preference shares and ordinary shares?
XXX Corporation was organized on January5, 2023. The authorized capital stock of preference consists of 20,000 preference shares with par value of P100 per share and the authorized capital stock of ordinary consist of 100,000 no par value ordinary shares with stated value of P50. On December 31, 2023, the ledger included the following balances: • Share Capital Preference = P600,000 Share Capital Ordinary = P2,000,000 Subscribed Share Capital Ordinary = P 500,000 ⚫Subscription Receivable Ordinary P250,000 Share Premium Preference = P90,000 Share Premium Ordinary = P300,000 ⚫Retained Earnings = 100,000 Additional Information: 1. 2,000 shares of preference were issued for brand new equipment with fair market value of P220,000. The remaining preference shares were issued for cash. There is no subscription receivable. 2. All ordinary shares were issued for cash. There is subscription receivable for ordinary shares. How much is the average premium per share of preference shares and ordinary shares?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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XXX Corporation was organized on January5, 2023. The authorized capital stock of preference consists of 20,000
preference shares with par value of P100 per share and the authorized capital stock of ordinary consist of 100,000 no par
value ordinary shares with stated value of P50. On December 31, 2023, the ledger included the following balances: •
Share Capital Preference = P600,000 Share Capital Ordinary = P2,000,000 Subscribed Share Capital Ordinary
500,000 •Subscription Receivable Ordinary P250,000 Share Premium Preference = P90,000 Share Premium
Ordinary = P300,000 ⚫Retained Earnings = 100,000 Additional Information: 1. 2,000 shares of preference were
issued for brand new equipment with fair market value of P220,000. The remaining preference shares were issued for
cash. There is no subscription receivable. 2. All ordinary shares were issued for cash. There is subscription receivable for
ordinary shares. How much is the average premium per share of preference shares and ordinary shares?
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