6. Burdado Company is authorized to issue 200,000 of P2 par value ordinary shares. The company has the following transactions: Issued 60,000 shares at P30 per share; received cash. Issued 750 shares, selling at P35 per share, to lawyers for services in connection with the organization of the corporation. The fair value of the legal services was P27,000. Issued 900 shares, valued objectively at P30,000, to the employees instead of paying them cash wages. Issued 37,500 shares in exchange for a building valued P885,000 and land valued at P240,000. (the building was originally acquired by the investor for P750,000 and has P300,000 of accumulated depreciation; the land was originally acquired for P90,000.) Received cash for P19,500 shares issued at P38 per share. Issued 12,000 shares at P45 per share; received cash. The statement of financial position will report share premium of Group of answer choices A. 4,000,950 B. 3,973,500 C. 4,001,750 D. 3,326,700
6. Burdado Company is authorized to issue 200,000 of P2 par value ordinary shares. The company has the following transactions: Issued 60,000 shares at P30 per share; received cash. Issued 750 shares, selling at P35 per share, to lawyers for services in connection with the organization of the corporation. The fair value of the legal services was P27,000. Issued 900 shares, valued objectively at P30,000, to the employees instead of paying them cash wages. Issued 37,500 shares in exchange for a building valued P885,000 and land valued at P240,000. (the building was originally acquired by the investor for P750,000 and has P300,000 of accumulated depreciation; the land was originally acquired for P90,000.) Received cash for P19,500 shares issued at P38 per share. Issued 12,000 shares at P45 per share; received cash. The statement of financial position will report share premium of Group of answer choices A. 4,000,950 B. 3,973,500 C. 4,001,750 D. 3,326,700
Chapter6: Corporations: Redemptions And Liquidations
Section: Chapter Questions
Problem 45P
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Question
16. Burdado Company is authorized to issue 200,000 of P2 par value ordinary shares. The company has the following transactions:
- Issued 60,000 shares at P30 per share; received cash.
- Issued 750 shares, selling at P35 per share, to lawyers for services in connection with the organization of the corporation. The fair value of the legal services was P27,000.
- Issued 900 shares, valued objectively at P30,000, to the employees instead of paying them cash wages.
- Issued 37,500 shares in exchange for a building valued P885,000 and land valued at P240,000. (the building was originally acquired by the investor for P750,000 and has P300,000 of accumulated
depreciation ; the land was originally acquired for P90,000.) - Received cash for P19,500 shares issued at P38 per share.
- Issued 12,000 shares at P45 per share; received cash.
The statement of financial position will report share premium of
Group of answer choices
A. 4,000,950
B. 3,973,500
C. 4,001,750
D. 3,326,700
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