A corporation issued 1,000 shares of P10 par value ordinary shares at P14 per share. Upon posting this journal entry, an increase of P14,000 will MOST LIKELY be reported in O Ordinary Share Capital account balance O Total share premium Total current assets O Total accumulated profits

A corporation issued 1,000 shares of P10 par value ordinary shares at P14 per share. Upon posting this journal entry, an increase of P14,000 will MOST LIKELY be reported in O Ordinary Share Capital account balance O Total share premium Total current assets O Total accumulated profits

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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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

A corporation issued 1,000 shares of P10 par value ordinary shares at P14 per
share. Upon posting this journal entry, an increase of P14,000 will MOST
LIKELY be reported in
O Ordinary Share Capital account balance
O Total share premium
Total current assets
O Total accumulated profits

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