Pat issued 1,000 shares of its P5 par value ordinary shares to Nenita a compensation for 1,000 hours of legal services performed. Nenita usu bills P160 per hour for legal services. On the date of issuance, the sha were trading on a public exchange at P140 per share. Determine the increase in share premium as a result of this transactie

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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.