100Jungkook Corporation was authorized toissue 10,000 preference shares ofP200 parvalue and 100,000 ordinary shares of P20par value. Subscription for4,000 preferenceshares was received at P225 per share witha down payment ofP25%. The balance ispayable after 60 days. What is the amountof Share Premium- Preference recognizedby Jungkook upon receipt of the preferencesharesubscription? *(1 Point)80,00070,00090,000100,000

Amount of share premium per share = Issue price per share - Par value per share Issue price per…

Answered: Share Premium- Preference

Business

Accounting

Share Premium- Preference

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

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

See similar textbooks

Related questions

Q: Define Discount Rate.

A: A discount rate is rate which is used to bring future value of cash flow to the present value.It is…

Q: What is purchasing power parity?

A: Purchasing power parity (PPP): It is one well known macroeconomic investigation metric for…

Q: Define discount on forward rate

A: Answer: For a purchase, a forward rate is a contract price that will be fulfilled at a date…

Q: What are cumulative and non- cumulative preference share ? Explain

A: Preferred stocks have a senior claim on distributions like dividends and company's assets than…

Q: Define dividend reinvestment plan (DRIP)

A: A dividend reinvestment plan (DRIP) provided by a corporation to the holders of stock that permits…

Q: purchase price

A: Purchase price = Net assets taken over - Required gain

Q: List price × trade discount rate = amount of trade discount. true or false

A: The question is related to true or false.

Q: State the difference between secondary market and primary market.

A: Financial Markets refer to the place where financial assets or securities are being created,…

Q: Define the term Return on common equity?

Q: Define secondary market

A: Secondary market: Secondary market is defined as a place where purchase and sale of securities is…

Q: Define the term premium?

A: Premium in finance has several definitions, with the initiative being the overall cost of purchasing…

Q: Define compound interest

A: Compound interest: Compound interest is the accumulation of interest to the principal amount of a…

Q: differnce between tradional and mordern dividend policy

A: Traditional Dividend Policy This approach was given by B. Graham and D. L.Dodd and it lays…

Q: Share option compensation is what accounting subject?

A: Stock-based compensation: It is a way of paying employees, executives, and directors of a company…

Q: labili sets/Net Sale

A: The correct answer is D. Net sales / Average Total Assets

Q: Define Risk Premium

A: It is defined as the distinction between the expected return for a portfolio or an investment and…

Q: Define Trade discounts.

A: Business: It refers to a commercial activity involving buying and selling of a product or a…

Q: Define capital rationing

A: Capital apportioning implies restricting the number of new ventures or projects an organization…

Q: What is liquidity premium (LP)?

A: Answer: Interest rate theory on liquidity premium is a significant concept in bond investment. It…

Q: Define the term equal-payment-series sinking-fund factor?

A: Equal payment series sinking fund: In this method of investing mode, the goal is determine the equal…

Q: Define targeted share repurchases

A: One targeting firm tries to avoid a hostile acquisition by purchasing a prospective customer's own…

Q: Define Share Repurchases.

A: Shares: A Share is a term which is used to define the ownership certificates of the company. A share…

Q: Define the term Lump-Sum Purchases.

A: Lump-sum: A lump-sum amount is defined as a single complete sum of money. A lump-sum investment is…

Q: Define Capital Market Line (CML)

A: Introduction: Risk refers to the degree of volatility involved in the anticipated return on…

Q: Define target payout ratio

A: SOLUTION:- A target payout ratio is a degree of the proportion of a company's profits it would want…

Q: Distinguish between primary markets and secondary markets

A: Primary-market-The primary market is the place where the new bonds, stocks, etc are sold to acquire…

Q: Differentiate between primary and secondary markets.

A: Primary market is a market where shares and securities are created and sold for the first time.…

Q: What is the cost of preferred equity?

A: Cost of preferred stock is the rate of return derived from the preference stock by the…

Q: Explain held-to-maturity investment.

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Explain fractional shares with examples.

A: Stock Splits: It is a method of increasing the total number of outstanding shares thereby, reducing…

Q: Market conditic characterized b

A: Since as in the given case, the cost of commercial paper is a recommended action, because it is…

Q: Define cost of equity? How does it relate to the ‘required rate of return’ (r) on equities?

A: Definition of Cost Equity: Cost of equity is the return that a company requires for an investment or…

Q: What amount should be credited to Share Premium?

A: Computation of fair value of Net identifiable assets Particulars Amount Current Assets…

Q: exchange gain or loss

A: As per IAS 21 ( The effect of changes in foreign exchange rates), a foreign currency monetary item…

Q: Define times-interest-earned (TIE) ratio

A: The number of times can a business pays off its interest obligation with the current earnings is…

Q: What is inflation premium (IP)?

A: Inflation premium is considered to be a very popular concept as this is considered to be a major…

Q: Define discount interest

A: Introduction: Usually, interest is the sum charged over an amount of time by the borrower for the…

Q: Define Lump-Sum Purchases.

A: When a company purchases a group of assets collectively for a single price, such a transaction is…

Q: Define equity residual model

A: Dividend discount model is one of the models used for the valuation of equity. This model considers…

Q: compound interest.

A: Compound interest = P * (1 + (i2/m))mt - P

Q: Explain payout ratio

A: The net income is the net profit of the company earned during the period. The net income includes…

Q: takaful premiums are?

A: Takaful insurance is an Islamic insurance in which Group members contribute money to mitigate the…

Q: What is premium on forward rate?

A: A forward rate is referred as an interest rate which is applicable on financial transactions which…

Q: Give an example of a book value share?

Q: Define Premium.

A: Book value per share: This is a financial ratio which measures the value of shareholders’ equity…

Q: Explain the ‘buy term and invest

A: This is best policy regarding the investment and insurance Buy the term and invest the rest.

Question

100
Jungkook Corporation was authorized to
issue 10,000 preference shares ofP200 par
value and 100,000 ordinary shares of P20
par value. Subscription for4,000 preference
shares was received at P225 per share with
a down payment ofP25%. The balance is
payable after 60 days. What is the amount
of Share Premium- Preference recognized
by Jungkook upon receipt of the preference
sharesubscription? *
(1 Point)
80,000
70,000
90,000
100,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Amount of share premium per preference share

VIEW

Calculation of total share premium from subscribed preference shares

VIEW

Answer

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.
Subscriptions On August 3, 2019, the date of incorporation, Quinn Company accepts separate subscriptions for 1,000 shares of 100 par preferred stock at 104 per share and 9,000 shares of 110-par, no-stated-value common stock for 22 per sl1are. The subscription contracts require a 10% down payment, with the balance due by November 1, 2019. Shares are issued to each subscriber upon full payment. On November 1, Quinn received the remaining balances for the shares of preferred stock and common stock. Required: Prepare journal entries to record all the transactions related to: 1. the preferred stock 2. the common stock
Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000
Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first year, the company has the following transaction: Mar. 1, issued 40,000 shares of preferred stock at $20.50 per share. Journalize the transaction.
Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.