ABC Co. is authorized to issue 400,000 of P 10 par value ordinary shares and 300,000 of P 15 par value preference shares. The company has the following transactions: a. Issued 20,000 ordinary shares at P20 per share; received cash b. Issued 50,000 ordinary shares in exchange for a building valued at P 900,000 and land valued at P 300,000. (The building was originally acquired by the investor for P 750,000 and has P 250,000 of accumulated depreciation; the land was originally acquired for P 90,000.) c. 10,000 ordinary shares were sold under share subscriptions at P 12 per share. d. Exchanged 30,000 ordinary and 10,000 preference shares for building with a fair value of P 600,000. The fair value of the ordinary and preferred shares as of that date is P20 and P30, respectively. e. Issued 5,000 ordinary shares and 2,000 preference shares for a lump-sum price of P120,000. At that date, the fair value of the preference shares cannot be determined while the fair value of the ordinary shares is P15 per share. f. Issued 800 preference shares, selling P25 per share to lawyers for services in connection with the organization of the corporation. The fair value of the legal services was P15,000. Issue cost is P3,500. What is the balance of the ordinary share premium after considering the above transactions?
ABC Co. is authorized to issue 400,000 of P 10 par value ordinary shares and 300,000 of P 15 par value preference shares. The company has the following transactions: a. Issued 20,000 ordinary shares at P20 per share; received cash b. Issued 50,000 ordinary shares in exchange for a building valued at P 900,000 and land valued at P 300,000. (The building was originally acquired by the investor for P 750,000 and has P 250,000 of
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