On July 1, 2018, Alaska Corp. issued 6,000 shares of its P 100 par ordinary share to Atty. Black as compensation for 1,000 hours of legal services performed during incorporation. Atty. Black usually bills P 500 per hour for legal services. On this date of issuance, the share was selling at a public trading at P 150 per share. By what amount should the Share Premium account of Alaska Corp. increase as a result of the issuance of those shares?

On July 1, 2018, Alaska Corp. issued 6,000 shares of its P 100 par ordinary share to Atty. Black as compensation for 1,000 hours of legal services performed during incorporation. Atty. Black usually bills P 500 per hour for legal services. On this date of issuance, the share was selling at a public trading at P 150 per share. By what amount should the Share Premium account of Alaska Corp. increase as a result of the issuance of those shares?

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 28E

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I. On July 1, 2018, Alaska Corp. issued 6,000 shares of its P 100 par ordinary share to Atty. Black as compensation for 1,000 hours of legal services performed during incorporation. Atty. Black usually bills P 500 per hour for legal services. On this date of issuance, the share was selling at a public trading at P 150 per share. By what amount should the Share Premium account of Alaska Corp. increase as a result of the issuance of those shares?
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