Avalanche Inc. revealed the following information for the year ended December 31, 2021: Preference share, P100 par - P2.4 million; Share premium, preference - P700,000; Ordinary share, P15 par - P3.5 million; Share premium, ordinary - P1.5 million; Subscribed ordinary share - P100,000; Retained earnings - P2 million; Subscription receivable, ordinary - P20,000 How much is the legal capital?

Avalanche Inc. revealed the following information for the year ended December 31, 2021: Preference share, P100 par - P2.4 million; Share premium, preference - P700,000; Ordinary share, P15 par - P3.5 million; Share premium, ordinary - P1.5 million; Subscribed ordinary share - P100,000; Retained earnings - P2 million; Subscription receivable, ordinary - P20,000 How much is the legal capital?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Avalanche Inc. revealed the following information for the year ended December 31. 2021 Preference share. P100 par-P2.4 million; Share premium, preference - P700,000; Ordinary share, P15 par-P3.5 million, Share premium, ordinary-P1.5 million. Subscribed ordinary share - P100,000, Retained earnings - P2 million, Subscription receivable, ordinary - P20,000 How much is the legal capital? A.P6 million B.PB 1 million CP5.9 million D.P8 2 million 2.At the beginning of 2021, DAI Corp. was organized with authorized capital of 200,000, P500 par value shares. The following transactions transpired during its first year of business. February 4- Issued 15.000 shares at P510 per share April 10- Issued 3,000 shares for services received (FMV of the services is P1.7 million). October 23-Issued 5,000 shares in exchange for a land (FMV) the land is P3 million) What amount should be reported as share premium? A.11.500.000 B. 23.000 C.850.000 D.12.350.000 3. At the beginning of 2021, DAI Corp. was…
Pat Company reported the following information on December 31, 2020. Determine the legal capital: * P230 000 80 500 525.000 275,000 5.000 Preference Share, P100 par Share Premium - Preference Ordinary Share, P15 par Share Premium- Ordinary Subscribed Ordinary Share Retained Earnings Notes Payable Subscription receivable- Ordinary 190,000 400,000 40,000 Your answer This is a required question
The shareholders’ equity section of THANOS Company revealed the following information on December 31, 2021: Preference share, ₱100 par,₱2,300,000; share premium-preference, ₱805,000; ordinary share,₱15 par, ₱5,250,000; share premium-ordinary, ₱2,750,000; subscribed ordinary share,₱50,000; Accumulated profits and losses,₱1,900,000; and stock dividends payable-ordinary, ₱450,000. How much is legal capital? a. ₱ 5,750,000 b. ₱ 8,050,000 c. ₱ 8,000,000 d. ₱ 7,600,000
"The following are found in the trial balance of M Corporation at December 31, 2021: Authorized ordinary share, P50 par value P3,000,000; Subscription receivable P200,000; Unissued ordinary share P1,000,000; Subscribed ordinary share P500,000; Share premium ordinary P100,000. What is the total number of shares available for subscription?"
K. The shareholder's equity section of Angel Inc. showed the following data on December 31, 2018: Preference Share (P100 par) P 2,300,000; Preference Share Premium P 805,000; Ordinary Share (P15 par) P 5,250,000; Ordinary Share Premium P 2,750,000 Subscribed Ordinary Share P 50,000; Retained Earnings P 1,900,000 Subscription Receivable (due on January 31, 2019) P 400,000 How much is the legal capital?
On December 31, 2020, ZEN Inc. reported a net income of P2,000,000. The following data are provided by ZEN concerning its shareholders’ equity: Ordinary shares at P10/par, P1,000,000; Share premium, 500,000; Subscribed ordinary shares, 300,000; Subscription receivable collectible beyond one year, 50,000; Treasury shares at cost (P12/share), 300,000; Cumulative-participating preference shares – 10%, P2,000,000; and Outstanding preference shares 100,000. The dividends on preference shares are in arrears for two years before December 31, 2020. No dividends were on preference shares were declared on year 2020. What is the basic earnings per share for preference shareholders for the year ended December 31, 2020? a. P6.00 b. P2.00 c. None
8. The shareholders’ equity section of THANOS Company revealed the following information on December 31, 2021: Preference share, ₱100 par,₱2,300,000; share premium-preference, ₱805,000; ordinary share,₱15 par, ₱5,250,000; share premium-ordinary, ₱2,750,000; subscribed ordinary share,₱50,000; Accumulated profits and losses,₱1,900,000; and stock dividends payable-ordinary, ₱450,000. How much is legal capital? * ₱ 8,000,000 ₱ 7,600,000 ₱ 8,050,000 ₱ 5,750,000
Penny Corporation provided the following account balances on December 31, 2021: Preference share, authorized, 250 par - P10,000,000; Unissued preference share - P3,600,000; Ordinary share, authorized, P20 par - P4,000,000; Unissued ordinary share - P2,000,000; Subscription receivable, preference share-380,000; Subscription receivable, ordinary share - P360,000; Subscribed preference share-P600,000; Subscribed ordinary share - P440,000; Treasury share, preference at cost-P1,360,000; Share premium - 1,700,000; Accumulated profits and losses - P2,000,000. All subscriptions receivables are due in year 2022. How much is the total shareholders’ equity of Penny Corporation?
RED Corporation provided the following account balances on December 31, 2021: Preference share, authorized, P50 par - P10,000,000; Unissued preference share - P3,600,000; Ordinary share, authorized, P20 par - P4,000,000; Unissued ordinary share - P2,000,000; Subscription receivable, preference share - P380,000; Subscription receivable, ordinary share - P360,000; Subscribed preference share -P600,000; Subscribed ordinary share -P440,000; Treasury share, preference at cost -P1,360,000; Share premium -P1,700,000; Accumulated profits and losses - P2,000,000. All subscriptions receivables are due in year 2022. How much is the total shareholders' equity of RED Corporation?
The stockholders/ equity section of Glavine Company revealed the following information on December 31, 2019: Preference share, P100 par 1,150,000 Premium on share capital - Preference share 402,500 Ordinary share, P15 par 2,620,000 Premium on share capital - Ordinary share 1,375,000 Subscribed ordinary share 250,000 Retained earnings 950,000 Note payable 2,000,000 Subscriptions receivable - Ordinary share…
Way Company's adjusted trial balance at December 31, 2021 includes the following: Ordinary Share Capital, P5 par P360,000 Share Premium - Ordinary 480,000 Treasury Shares, at cost 30,000 Share Premium - Preference 12,000 Retained Earnings 90,000 Preference Share Capital, P10 par 120,000 What amount should Way report as total shareholders' equity in its December 31, 2021 statement of financial position?
Part of the Financial Position of Candy Inc. as of Dec. 31, 2019 shows the following: Accounts Payable Bonds payable Ordinary Share Capital par) 8% Preference Share Capital (P200 par) 10% Preference Share Capital(P200 par) Р 56,000 500,000 550,000 (P100 300,000 200,000 25,000 50,000 70,000 230,000 (21,000) P 1,960,000 Share Premium – ordinary Share Premium – Preference Appropriations reserve Accumulated Profits Treasury shares - ordinary (P105/sh) Total Equities Dividends are in arrears for two years. The 10% preference share capital is cumulative while the 8% preference share capital is participating up to 12%. If Candy Inc. is liquidated, how much would be received by Mr. Gwapo who holds 500 ordinary shares and 100 shares of 10% preference shares?