Ablue Company had 50,000 shares of P100 par authorized. During 2004, first year of operations, the entity sold 30,000 ordinary shares for P180 per share and issued 5,000 ordinary shares in exchange for a patent with fair value P600,000. The entity reported net income of P1,000,000 for 2004. What amount should be reported as contributed capital at the end of 2004?
Ablue Company had 50,000 shares of P100 par authorized. During 2004, first year of operations, the entity sold 30,000 ordinary shares for P180 per share and issued 5,000 ordinary shares in exchange for a patent with fair value P600,000. The entity reported net income of P1,000,000 for 2004. What amount should be reported as contributed capital at the end of 2004?
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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Ablue Company had 50,000 shares of P100 par authorized. During 2004, first year of operations, the entity sold 30,000 ordinary shares for P180 per share and issued 5,000 ordinary shares in exchange for a patent with fair value P600,000. The entity reported net income of P1,000,000 for 2004. What amount should be reported as contributed capital at the end of 2004?
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