Lightning Company is authorized to issue 600,000 shares of P10 par value ordinary shares and 200,000 of P50 par preference shares. The following transactions occurred in 2021, the company’s first year of operations. Issued for a total of P1,100,000, 20,000 ordinary shares and 5,000 shares of preference shares. On this date each ordinary shares are selling at P30 per share while each preference is selling at P80 per share.Issued 2,500 preference shares to lawyers for services rendered in securing the corporate charter and for preliminary legal costs of organizing the corporation. The fair value of the services is P150,000.Issued 3,000 ordinary shares, valued objectively at P96,000 to employee instead of paying them cash for their wages.Issued 125,000 ordinary shares in exchange for a building value at P2,950,000 and land valued at P800,000. The ordinary share balance on December 31, 2021?The preference share balance on December 31, 2021?The amount of share premium in excess of par at December 31, 2021?

Company sells the interest to raise the funds and to raise funds Company sells the shares and the…

Answered: The ordinary share balance on December…

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 16E: Contributed Capital Adams Companys records provide the following information on December 31, 2019:...

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Lightning Company is authorized to issue 600,000 shares of P10 par value ordinary shares and 200,000 of P50 par preference shares. The following transactions occurred in 2021, the company’s first year of operations.

Issued for a total of P1,100,000, 20,000 ordinary shares and 5,000 shares of preference shares. On this date each ordinary shares are selling at P30 per share while each preference is selling at P80 per share.
Issued 2,500 preference shares to lawyers for services rendered in securing the corporate charter and for preliminary legal costs of organizing the corporation. The fair value of the services is P150,000.
Issued 3,000 ordinary shares, valued objectively at P96,000 to employee instead of paying them cash for their wages.
Issued 125,000 ordinary shares in exchange for a building value at P2,950,000 and land valued at P800,000.

The ordinary share balance on December 31, 2021?

The preference share balance on December 31, 2021?

The amount of share premium in excess of par at December 31, 2021?

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