XYZ Corporation was incorporated on January 1, 2021 with the following authorized capitalization: Ordinary Share Capital, 200,000 shares, P100 stated value 10% Preference Share Capital, 200,000 shares, P50 par During 2021, the entity issued 150,000 ordinary shares for a total of P18,000,000 and 50,000 preference shares at P60 per share In addition, on December 15, 2021, subscription for 20,000 preference shares were taken at a subscription price of P100 per share. These subscribed shares were paid for on June 15, 2022 Net income for 2021 was P5,000,000. What amount should be reported as total contributed capital on December 31, 20217.
XYZ Corporation was incorporated on January 1, 2021 with the following authorized capitalization: Ordinary Share Capital, 200,000 shares, P100 stated value 10% Preference Share Capital, 200,000 shares, P50 par During 2021, the entity issued 150,000 ordinary shares for a total of P18,000,000 and 50,000 preference shares at P60 per share In addition, on December 15, 2021, subscription for 20,000 preference shares were taken at a subscription price of P100 per share. These subscribed shares were paid for on June 15, 2022 Net income for 2021 was P5,000,000. What amount should be reported as total contributed capital on December 31, 20217.
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 2MC: Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions...
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XYZ Corporation was incorporated on January 1, 2021 with the following authorized capitalization:
Ordinary Share Capital, 200,000 shares, P100 stated value
10% Preference Share Capital, 200,000 shares, P50 par
During 2021, the entity issued 150,000 ordinary shares for a total of P18,000,000 and 50,000 preference shares at P60 per share In addition, on December 15, 2021, subscription for 20,000 preference shares were taken at a subscription price of P100 per share. These subscribed shares were paid for on June 15, 2022 Net income for 2021 was P5,000,000. What amount should be reported as total contributed capital on December 31, 20217.
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