Item No. 9 is based on the A corporation's liability (Notes Payable) in the amount of P 100,000 was paid by issuing its 1,000 no-par value ordinary shares with a stated value of P 90 per share. On the date of payment, the shares were selling at P 95 per share. 9. The journal entry to record the foregoing transaction would be: P 100,000 a. Notes Payable---- --- P 100,000 Ordinary Share Capital b. Notes Payable- P 100,000 Ordinary Share Capital P 95,000 Ordinary Share Capital in Excess of Stated Value ------- 5,000 c. Notes Payable---- P 100,000 Ordinary Share Capital P 90,000 Ordinary Share Capital in Excess of Stated Value- 10,000 d. Notes Payable---- P 100,000 Ordinary Share Capital Cash- P 90,000 10,000

Item No. 9 is based on the A corporation's liability (Notes Payable) in the amount of P 100,000 was paid by issuing its 1,000 no-par value ordinary shares with a stated value of P 90 per share. On the date of payment, the shares were selling at P 95 per share. 9. The journal entry to record the foregoing transaction would be: P 100,000 a. Notes Payable---- --- P 100,000 Ordinary Share Capital b. Notes Payable- P 100,000 Ordinary Share Capital P 95,000 Ordinary Share Capital in Excess of Stated Value ------- 5,000 c. Notes Payable---- P 100,000 Ordinary Share Capital P 90,000 Ordinary Share Capital in Excess of Stated Value- 10,000 d. Notes Payable---- P 100,000 Ordinary Share Capital Cash- P 90,000 10,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 12MC: A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting...

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