ERGO Corp. has ordinary share capital with par value of ₱50, and preference share capital with par value of ₱100 per share. Below are the related transactions for the year: Issued 2,000 ordinary shares for ₱70 per share Issued 3,000 preference shares for ₱150 per share Received subscriptions for 800 ordinary shares at ₱80 per share Received subscriptions for 300 preference shares at ₱200 per share, of which ₱40,000 is subscriptions receivable The Share Premium account has no balance at the start of the year. How much is the balance of the Share Premium account at the end of the year?

ERGO Corp. has ordinary share capital with par value of ₱50, and preference share capital with par value of ₱100 per share. Below are the related transactions for the year: Issued 2,000 ordinary shares for ₱70 per share Issued 3,000 preference shares for ₱150 per share Received subscriptions for 800 ordinary shares at ₱80 per share Received subscriptions for 300 preference shares at ₱200 per share, of which ₱40,000 is subscriptions receivable The Share Premium account has no balance at the start of the year. How much is the balance of the Share Premium account at the end of the year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 12P

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