Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CE Corp. is authorized to issue P10 par ordinary share capital. The company received subscription from Mr. Cold for 20,000 shares at P15 per share.

CE Corp. is authorized to issue P10 par ordinary share capital. The company received subscription from Mr. Cold  for 20,000 shares at P15 per share. Mr. COLD paid 40% down payment and the balance is payable at the end of 60 days. After several calls, Mr. COLD failed to pay the balance of his subscription. Thirty days after the due date, the shares were declared delinquent and were advertised for sale at a public auction. Expenses incurred for advertising the sale amounted to P5,000, which were duly paid by the corporation.


There were three (3) bidders who are willing to Pay the remaining balance of subscription and all expenses related to the delinquent shares and are willing to get the number of shares as follow:


                        Sunny So         10,000 shares


                        Moony Mo        8,000 shares


                       Windy Wee      12,000 shares


  1. What amount would be the total receivable from the highest bidder?
  2. Who is the higher bidder?
  3. How many shares will be given to Mr. Cold

Step by Step Solution

3.44 Rating (151 Votes )

There are 3 Steps involved in it

Step: 1

Based on the information given here are the answers to your questions What amount would be the total ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

10th Edition

324300980, 978-0324300987

More Books

Students also viewed these Accounting questions

Question

Why is the national security argument for tariffs questionable?

Answered: 1 week ago