Financial Accounting and ReportingTopic: Issuance of Share Capital 3. ABC Corporation is authorized to issue 80,000 ordinary shares. During the current year, thecorporation issued 25,000 shares.Required:Prepare the required entry to record the issuance of the ordinary shares under each of the followingassumptions:The shares have a par value of P5 and were sold for P20 per shareb. The shares are no-par but have a stated value of P10. The total issue price was P850,000.The shares are no-par and have no stated value. They were issued at P25а.с.pershare

(a) Paid in capital in excess of par per share = 20 - 5 = 15 per shares

Answered: 3. ABC Corporation is authorized to…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

See similar textbooks

Related questions

Question

Financial Accounting and Reporting

Topic: Issuance of Share Capital

3. ABC Corporation is authorized to issue 80,000 ordinary shares. During the current year, the
corporation issued 25,000 shares.
Required:
Prepare the required entry to record the issuance of the ordinary shares under each of the following
assumptions:
The shares have a par value of P5 and were sold for P20 per share
b. The shares are no-par but have a stated value of P10. The total issue price was P850,000.
The shares are no-par and have no stated value. They were issued at P25
а.
с.
per
share

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

Expert Solution

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions