BFAR Corp.'s 3,000 preference shares with a par value of P10 per share were subscribed for P18 per share. On the date of subscription, the subscriber paid 30% of the total subscription price. Afterwards, the subscriber paid 10% of the unpaid balance. After numerous attempts of collection, no payment was received from the subscriber and the subscription was declared as delinquent. Interest amounting to P1,305 is charged to the delinquent subscriber. The company had the delinquent subscription auctioned and advertising cost amounted to P9,863. How much should the highest bidder offer to pay?

BFAR Corp.'s 3,000 preference shares with a par value of P10 per share were subscribed for P18 per share. On the date of subscription, the subscriber paid 30% of the total subscription price. Afterwards, the subscriber paid 10% of the unpaid balance. After numerous attempts of collection, no payment was received from the subscriber and the subscription was declared as delinquent. Interest amounting to P1,305 is charged to the delinquent subscriber. The company had the delinquent subscription auctioned and advertising cost amounted to P9,863. How much should the highest bidder offer to pay?

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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