On the date of incorporation, the condensed balance sheet of Alom Partnership showed the following: Cash P 28,000 Other Assets 256,000 Liabilities 50,000 Alpha Capital 180,000 Omega Capital 54,000 The Securities and Exchange Commission authorized the corporation to issue the following shares: o 10,000 shares of 12% Preference Share Capital, par P 100; and o 20,000 shares of Ordinary Share Capital, par P 50. The corporation issued 1,500 preference shares and 800 ordinary shares to Alpha in exchange for her equity in the partnership. On the other hand, Omega received 1,500 preference shares and 1,200 ordinary shares for her equity in the partnership. Any capital deficiency of the partners will be paid in cash. Three other incorporators each subscribed at par, 1,500 preference shares and 2,000 ordinary shares paying only 25% of their subscriptions and the balance payable in two months from the date of subscription. Refer to Alom, How much is the total shareholders’ equity of the new corporation? a. 254,000 c. 607,500 b. 597,500 d. 1,150,000
On the date of incorporation, the condensed balance sheet of Alom Partnership showed the following: Cash P 28,000 Other Assets 256,000 Liabilities 50,000 Alpha Capital 180,000 Omega Capital 54,000 The Securities and Exchange Commission authorized the corporation to issue the following shares: o 10,000 shares of 12% Preference Share Capital, par P 100; and o 20,000 shares of Ordinary Share Capital, par P 50. The corporation issued 1,500 preference shares and 800 ordinary shares to Alpha in exchange for her equity in the partnership. On the other hand, Omega received 1,500 preference shares and 1,200 ordinary shares for her equity in the partnership. Any capital deficiency of the partners will be paid in cash. Three other incorporators each subscribed at par, 1,500 preference shares and 2,000 ordinary shares paying only 25% of their subscriptions and the balance payable in two months from the date of subscription. Refer to Alom, How much is the total shareholders’ equity of the new corporation? a. 254,000 c. 607,500 b. 597,500 d. 1,150,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On the date of incorporation, the condensed
Cash P 28,000
Other Assets 256,000 Liabilities 50,000 Alpha Capital 180,000 Omega Capital 54,000 The Securities and Exchange Commission authorized the corporation to issue the following shares:
o 10,000 shares of 12%
o 20,000 shares of Ordinary Share Capital, par P 50. The corporation issued 1,500 preference shares and 800 ordinary shares to Alpha in exchange for her equity in the partnership. On the other hand, Omega received 1,500 preference shares and 1,200 ordinary shares for her equity in the partnership. Any capital deficiency of the partners will be paid in cash. Three other incorporators each subscribed at par, 1,500 preference shares and 2,000 ordinary shares paying only 25% of their subscriptions and the balance payable in two months from the date of subscription.
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Refer to Alom, How much is the total shareholders’ equity of the new corporation?
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