On July 1, 2002, Orange Company issued rights to stockholders to subscribe to additional shares of its share capital. One right was issued for each share owned. A stockholder could purchase one additional share for five rights plus P150 cash. The rights expired on September 30, 2002. On July 1, 2002, the market price of a share with the right attached was P200, while the market price of the right alone was P15. The equity on June 30, 2002, comprised of the following: Share capital, P100 par, 100,000 shares issued and 10,000,000 outstanding Share premium 2,000,000 Retained earnings 2,000,000 What is the total contributed capital, assuming the shareholders exercise all stock rights?

On July 1, 2002, Orange Company issued rights to stockholders to subscribe to additional shares of its share capital. One right was issued for each share owned. A stockholder could purchase one additional share for five rights plus P150 cash. The rights expired on September 30, 2002. On July 1, 2002, the market price of a share with the right attached was P200, while the market price of the right alone was P15. The equity on June 30, 2002, comprised of the following: Share capital, P100 par, 100,000 shares issued and 10,000,000 outstanding Share premium 2,000,000 Retained earnings 2,000,000 What is the total contributed capital, assuming the shareholders exercise all stock rights?

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 9P: Comprehensive Young Corporation has been operating successfully for several years. It is authorized...

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