F.The Silver Ray Corporation was organized on January 1, 2018 with authorized share capital consisting of50,000 preference shares with a par value of P 50 and 1,000,000 of no-par ordinary shares with a statedvalue of P 10 per share. At December 31, 2018, the ledger included the following balances pertaining toshareholders' equity.Preference Share CapitalPreference Share PremiumP 1,000,000120,0003,000,0004,500,000Ordinary Share CapitalOrdinary Share Capital in Excess of Stated Value10,000 preference shares were issued in exchange for equipment having a fair value of P 550,000. Theremaining preference shares were issued for cash. All ordinary shares were issued for cash.Required: Compute for the following:a) Number of preference shares issued for cashb)Price per share of preference share capital issued for cashNumber of ordinary shares issuedc)d)Average price per share of the ordinary share capital issued for cashe) Total preference share premium arising from issuance in exchange for equipment.

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F. The Silver Ray Corporation was organized on January 1, 2018 with authorized share capital consisting of 50,000 preference shares with a par value of P 50 and 1,000,000 of no-par ordinary shares with a stated value of P 10 per share. At December 31, 2018, the ledger included the following balances pertaining to shareholders' equity. Preference Share Capital Preference Share Premium P 1,000,000 120,000 3,000,000 Ordinary Share Capital Ordinary Share Capital in Excess of Stated Value 4,500,000 10,000 preference shares were issued in exchange for equipment having a fair value of P 550,000. The remaining preference shares were issued for cash. All ordinary shares were issued for cash. Required: Compute for the following: a) Number of preference shares issued for cash b) Price per share of preference share capital issued for cash c) Number of ordinary shares issued

F. The Silver Ray Corporation was organized on January 1, 2018 with authorized share capital consisting of 50,000 preference shares with a par value of P 50 and 1,000,000 of no-par ordinary shares with a stated value of P 10 per share. At December 31, 2018, the ledger included the following balances pertaining to shareholders' equity. Preference Share Capital Preference Share Premium P 1,000,000 120,000 3,000,000 Ordinary Share Capital Ordinary Share Capital in Excess of Stated Value 4,500,000 10,000 preference shares were issued in exchange for equipment having a fair value of P 550,000. The remaining preference shares were issued for cash. All ordinary shares were issued for cash. Required: Compute for the following: a) Number of preference shares issued for cash b) Price per share of preference share capital issued for cash c) Number of ordinary shares issued

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 81PSA

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