What should FROZEN report as total contributed capital in its December 31, 2018 statement of financial position? FROZEN Corporation was incorporated on January 1, 2018 with the following authorizedcapitalization:• 40,000 ordinary shares, no par value, stated value of P40 per share• 10,000 shares of 5% cumulative preference share, par value of P10 per shareDuring 2018, FROZEN issued 24,000 ordinary shares for a total consideration of P1,200,000and 6,000 preference share at P16 per share. In addition, on December 29, 2018, subscriptionsfor 2,000 preference shares were taken at a purchase price of P17. These subscribed shares werepaid for on January 2, 2019.

SOLUTION- CONTRIBUTED CAPITAL IS THE FINANCING OF A CAPITAL (INDIVIDUAL OR PARTNERSHIP) BY THE…

Answered: FROZEN Corporation was incorporated on…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 7PA: Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000...

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What should FROZEN report as total contributed capital in its December 31, 2018 statement of financial position?

FROZEN Corporation was incorporated on January 1, 2018 with the following authorized
capitalization:
• 40,000 ordinary shares, no par value, stated value of P40 per share
• 10,000 shares of 5% cumulative preference share, par value of P10 per share
During 2018, FROZEN issued 24,000 ordinary shares for a total consideration of P1,200,000
and 6,000 preference share at P16 per share. In addition, on December 29, 2018, subscriptions
for 2,000 preference shares were taken at a purchase price of P17. These subscribed shares were
paid for on January 2, 2019.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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