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FINANCIAL ACCOUNTING
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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ABC Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares of 8% preference shares, P130 par value, and 150,000 shares of ordinary shares, P70 par value. Transactions for the year were as follows: Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair market value of P400,000 May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment were received. How much is the legal capital at the end of the year 2021? O P4,760,000 P5,755,000 O P4,225,000 O P3,500,000
Transcribed Image Text:ABC Corporation was organized on Feb 01, 2021. The corporation was authorized to issue 40,000 shares of 8% preference shares, P130 par value, and 150,000 shares of ordinary shares, P70 par value. Transactions for the year were as follows: Mar 31 - Sold 45,000 shares of ordinary shares at P85 for cash Apr 30 - Issued 5,000 shares of ordinary shares in exchange for an equipment with a fair market value of P400,000 May 21 - 18,000 shares of ordinary shares were subscribed at P85 and a 60% payment were received. How much is the legal capital at the end of the year 2021? O P4,760,000 P5,755,000 O P4,225,000 O P3,500,000
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