On September 1, RAZZIL issued 3,000 shares with par value of P50 par ordinary shares to Atty. Rigor for 100 hours of legal consultation. Based on the website of Atty. Rigor, the rate of his service is usually P2,000 per hour. On the website of Philippine Stock Exchange (PSE), the shares are quoted at P60 per share on that date of issuance. What journal entry should RAZZIL record on its books related to the issuance? a. Professional expenses 180,000 Share capital 150,000 Share premium 30,000 b. Professional expenses 180,000 Share capital 180,000 c. Professional expenses 200,000 Share capital 150,000 Share premium 50,000 d. Professional expenses 200,000 Share capital 200,000

On September 1, RAZZIL issued 3,000 shares with par value of P50 par ordinary shares to Atty. Rigor for 100 hours of legal consultation. Based on the website of Atty. Rigor, the rate of his service is usually P2,000 per hour. On the website of Philippine Stock Exchange (PSE), the shares are quoted at P60 per share on that date of issuance. What journal entry should RAZZIL record on its books related to the issuance? a. Professional expenses 180,000 Share capital 150,000 Share premium 30,000 b. Professional expenses 180,000 Share capital 180,000 c. Professional expenses 200,000 Share capital 150,000 Share premium 50,000 d. Professional expenses 200,000 Share capital 200,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 6PA: EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of...

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