On September 1, RAZZIL issued 3,000 shares with par value of P50 par ordinary shares to Atty. Rigor for 100 hours of legal consultation. Based on the website of Atty. Rigor, the rate of his service is usually P2,000 per hour. On the website of Philippine Stock Exchange (PSE), the shares are quoted at P60 per share on that date of issuance. What journal entry should RAZZIL record on its books related to the issuance? a. Professional expenses 180,000 Share capital 150,000 Share premium 30,000 b. Professional expenses 180,000 Share capital 180,000 c. Professional expenses 200,000 Share capital 150,000 Share premium 50,000 d. Professional expenses 200,000 Share capital 200,000
On September 1, RAZZIL issued 3,000 shares with par value of P50 par ordinary shares to Atty. Rigor for 100 hours of legal consultation. Based on the website of Atty. Rigor, the rate of his service is usually P2,000 per hour. On the website of Philippine Stock Exchange (PSE), the shares are quoted at P60 per share on that date of issuance. What journal entry should RAZZIL record on its books related to the issuance? a. Professional expenses 180,000 Share capital 150,000 Share premium 30,000 b. Professional expenses 180,000 Share capital 180,000 c. Professional expenses 200,000 Share capital 150,000 Share premium 50,000 d. Professional expenses 200,000 Share capital 200,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On September 1, RAZZIL issued 3,000 shares with par value of P50 par ordinary shares to Atty. Rigor for 100 hours of legal consultation. Based on the website of Atty. Rigor, the rate of his service is usually P2,000 per hour. On the website of Philippine Stock Exchange (PSE), the shares are quoted at P60 per share on that date of issuance. What journal entry should RAZZIL record on its books related to the issuance?
a. Professional expenses 180,000
Share capital 150,000
Share premium 30,000
Share capital 150,000
Share premium 30,000
b. Professional expenses 180,000
Share capital 180,000
Share capital 180,000
c. Professional expenses 200,000
Share capital 150,000
Share premium 50,000
Share premium 50,000
d. Professional expenses 200,000
Share capital 200,000
Share capital 200,000
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