CFAS Corporation issued 5,000 ordinary shares of P100 par value inexchange for a land. Based on the latest tax declaration, the value.assigned to the land was P700,000. On the same date, the shareswere actively trading in the market at P150 per share. The totalconsideration for the issuance should be valued at: CFAS Corporation was organized on January 1, with anauthorization of 1,000,000 ordinary shares with a par value of P5per share.During the year, the corporation had the following equitytransactions:Jan. 3Issued 300,000 shares @ P5 per share.March 28Issued 200,000 shares @ P6.50 per share.May 13Issued 35,000 shares @ P11.20 per shareAugust 1Reacquired 50,000 shares @ P3.50 per share.Nov. 20Sold 30,000 shares held in treasury @ P7 per share.Dec. 31Sold 10.000 shares held in treasury at P2.00 per share.What should be the total Share Premium as of December 31?

General Journal Debit Credit Land P7,50,000 Common Stock (5000 shares * P100)…

CFAS Corporation issued 5,000 ordinary shares of P100 par value in Exchange for a land. Based on the latest tax declaration, the value assigned to the land was P700,000. On the same date, the shares were actively trading in the market at P150 per share. The total consideration for the issuance should be valued at:

CFAS Corporation issued 5,000 ordinary shares of P100 par value in Exchange for a land. Based on the latest tax declaration, the value assigned to the land was P700,000. On the same date, the shares were actively trading in the market at P150 per share. The total consideration for the issuance should be valued at:

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 1MC

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