Brian Baluya was a subscriber of Global Appliance Corporation for 300 ordinary shares at P150 par value per share. He failed to pay his subscription balance of P27,000 which is equivalent to 180 shares despite lawful calls and notices being sent to him. The corporation declared all the shares to be delinquent and advertised this to an auction sale. Three (3) bidders were received all in sealed envelopes and signified their intentions to pay the subscription balance of P27,000 plus advertising expenses of P560 but differ on the share that each bidder wanted to acquire: Melanie Buenzuelan 170 shares Thelma Ciudadano 178 shares Gervacio Piator 180 shares Answer the following questions: 1. How many shares are declared delinquent? 2. Who is the highest bidder in the auction sale? 3. How much cash that subscriber Brian Baluya has paid to the corporation before the subscriptions become delinquent?
Brian Baluya was a subscriber of Global Appliance Corporation for 300 ordinary shares at P150 par value per share. He failed to pay his subscription balance of P27,000 which is equivalent to 180 shares despite lawful calls and notices being sent to him. The corporation declared all the shares to be delinquent and advertised this to an auction sale. Three (3) bidders were received all in sealed envelopes and signified their intentions to pay the subscription balance of P27,000 plus advertising expenses of P560 but differ on the share that each bidder wanted to acquire: Melanie Buenzuelan 170 shares Thelma Ciudadano 178 shares Gervacio Piator 180 shares Answer the following questions: 1. How many shares are declared delinquent? 2. Who is the highest bidder in the auction sale? 3. How much cash that subscriber Brian Baluya has paid to the corporation before the subscriptions become delinquent?
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 54P
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Transcribed Image Text:Problem 5.
Brian Baluya was a subscriber of Global Appliance Corporation for 300 ordinary shares at P150 par value per
share. He failed to pay his subscription balance of P27,000 which is equivalent to 180 shares despite lawful
calls and notices being sent to him.
The corporation declared all the shares to be delinquent and advertised this to an auction sale. Three (3)
bidders were received all in sealed envelopes and signified their intentions to pay the subscription balance of
P27,000 plus advertising expenses of P560 but differ on the share that each bidder wanted to acquire:
Melanie Buenzuelan 170 shares
Thelma Ciudadano 178 shares
Gervacio Piator
180 shares
Answer the following questions:
1. How many shares are declared delinquent?
2. Who is the highest bidder in the auction sale?
3. How much cash that subscriber Brian Baluya has paid to the corporation before the subscriptions become
delinquent?
4. What is the journal entry to record the delinquency sale of Brian Baluya?
5. After the auction sale and upon issuance of certificates of shares, how many shares shall be issued to Brian
Baluya?
6. After the auction sale and upon issuance of certificates of shares, how many shares shall be issued to the
highest bidder?
7. How many share certificates shall be issued?
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