Item No. 11 is based on the following information:air IE sedmeo90000,002 9 6000,048 942dAlpha Company was incorporated at the beginning of this year with thefollowing authorized capitalization:15.39.dM2.9termotrand on 21o 200,000, 10% cumulative preference shares, par P 50; andsqmo) sinan to1009o 200,000 ordinary shares, no-par, P 100 stated value shares.9V91-During the year, Alpha issued 50,000 preference shares at P 60 pershare and 150,000 ordinary shares for a total of P 18,000,000. In addition,subscriptions for 20,000 preference shares were taken in December this year ata purchase price of P 100 per share. These subscribed shares will be paid in! January next year. Profit for this year was P 5,000,000.I11. What should Alpha report as total contributed capital on its balance sheetas at December 31 this year?c.P 26,000,000.22.09Ia. P 21,000,000. [d.P 28,000,000.b. P 23,000,000.),81 9OH 20

Shares are the units of the total stock of a company which shows the fractional ownership of the…

a purchase price of P 100 per share. These subsc January next year. Profit for this year was P 5,000,000. 11. What should Alpha report as total contributed capital on its balance sheet as at December 31 this year? c. P 26,000,000. a. P 21,000,000. d. P 28,000,000. b. P 23,000,000.

a purchase price of P 100 per share. These subsc January next year. Profit for this year was P 5,000,000. 11. What should Alpha report as total contributed capital on its balance sheet as at December 31 this year? c. P 26,000,000. a. P 21,000,000. d. P 28,000,000. b. P 23,000,000.

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 2MC: Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions...

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Vishnu Company is authorized to issue 500,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Apr. 10, issued 1,000 shares of stock for legal services valued at $15,000. Journalize the transaction.
Juniper Company is authorized to issue 5,000,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Mar. 1, issued 4,000 shares of stock in exchange for equipment worth $250,000. Journalize the transaction.
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Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.
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KAHITPUMASALANGOKAYNA CORPORATION provided the following data on December 31,201912% preference share capital, 20 000 shares, P100 par 2 000 00014% preference share capital, 10 000 shares, P300 par 3 000 000Ordinary share capital, 50 000 shares, P100 par 5 000 000retained earnings 2 240 000share premium 1 500 000the 12% preference share is cumulative and participating. the 14% preference share is noncumulatie and participating. dividends are in arrearsfor 3 years. the 12% preference share is conertible. each 12% preference share can be converted to 2 ordinary shares. ordinary shares outstanding on January 1,2019 were 25,000 shares. 15 000 shares were issued on July 1, while another 10 000 shares were issued on October 1. the issuance during the year was all at par. net income for the year was…
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