ABC Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares of 8% preference shares, P130 par value, and 150,000 shares of ordinary shares, P70 par value. Transactions for the year were as follows: · Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash · Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair market value of P400,000 · May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment were received. How much is the legal capital at the end of the year 2021? P4,760,000 P5,755,000 P4,225,000 P3,500,000
ABC Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares of 8% preference shares, P130 par value, and 150,000 shares of ordinary shares, P70 par value. Transactions for the year were as follows: · Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash · Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair market value of P400,000 · May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment were received. How much is the legal capital at the end of the year 2021? P4,760,000 P5,755,000 P4,225,000 P3,500,000
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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ABC Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares of 8% preference shares , P130 par value, and 150,000 shares of ordinary shares, P70 par value. Transactions for the year were as follows:
· Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash
· Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair market value of P400,000
· May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment were received.
How much is the legal capital at the end of the year 2021?
· Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash
· Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair market value of P400,000
· May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment were received.
How much is the legal capital at the end of the year 2021?
P4,760,000
P5,755,000
P4,225,000
P3,500,000
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