1.

The stockholders' equity of May Co. revealed the following on January 1, 2020: Preference Share, P100 par value P230,000 Paid-in Capital in Excess of Par - Preference 80,500 Ordinary Share, P15 par value 525,000 Paid-in Capital in Excess of Par - Ordinary 275,000 Subscribed Ordinary Share 5,000 Retained Earnings 190,000 Notes Payable 400,000 Subscription Receivable - Ordinary 40,000 How much is the legal capital of the company? A. P1,305,500 C. P760,000 B. P1,115,000 D. P755,000On January 5, 2020, ABC Co. issued 10,000 shares of its P200 par value ordinary share and 20,000 shares of its P200 par value convertible preference share for a total consideration of P8,000,000. At this date, ABC Co.'s ordinary share was selling P360 per share and convertible preference share was selling for P270 per share. What amount of the proceeds should be allocated to the preference shares? A. P4,400,000 C. P5,400,000 E. answer not given B. P4,800,000 D. P6,000,000 Using problem how much of the proceeds should be allocated to the ordinary shares? A. P2,000,000 C. P3,600,000 E. answer not given B. P3,200,000 D. P4,000,000 Using problem how much is the share premium from the issuance of preference shares? A. PO C. P1,000,000 E. answer not given B. P800,000 D. P1,800,000 Using problem how much is the share premium from the issuance of ordinary shares? A. PO C. P1,600,000 E. answer not given B. P1,200,000 D. P2,000,000On January 1, 2019, ABC Co. was organized with authorized share capital of 1,000,000 shares of P200 par value. During 2019, ABC Co. had the following transactions: a. issued 25,000 shares at P220 per share b. issued 1,000 shares for legal services when the fair value was P240 per share. c. issued 5,000 shares for a tract of land when the fair value was P260 per share. How much should be recognized as total share premium resulting from the above transactions? A. P500,000 C. P800,000 E. answer not given B. P540,000 D. P840,000On July 1, 2020, ABC Co. issued 2,600 shares of its P24 par value share to acquire a piece of land. A few days ago, the land was appraised by an independent appraiser at P100,000. ABC Co. is currently trading at the stock exchange at P45. Earnings per share is P40. How much should be debited to Land account? A. P62,400 C. P104,000 E. answer not given B. P100,000 D. P117,000