Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 41 6 pts CFAS Company was organized in 2022 with authorized capitalization of 500,000 ordinary shares with P150 par value per share and 100,000

image text in transcribed

Question 41 6 pts CFAS Company was organized in 2022 with authorized capitalization of 500,000 ordinary shares with P150 par value per share and 100,000 preference shares with P100 par value per share. The following transactions during the year. January 4, 2022, the company issued 100,000 ordinary shares and 50,000 preference shares for a total consideration of P22,000,000. At that time, the fair value of ordinary shares were P200 per share while the preference shares were P150 per share. On June 25, 2022, the entity issued 2,000 ordinary shares in exchange for legal services. The lawyer usually bills P400,000 for this service. On the same date, the ordinary shares were selling for P220 per share. On December 30, 2022, the entity issued 10,000 preference shares in exchange for a tract of land. The land has no reasonable fair value. The preference shares were selling for P180 per share on this date. Answer the following questions (Input your answers as figures, do NOT put any comma, peso sign or extra spaces. E.g. if your answer is one thousand, please input 1000): nswer 1. What amount should be reported as ordinary share capital at the end of the year? 2. What amount should be reported as preference share capital at the end of the year? 3. What amount should be reported as share premium at the end of the year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

More Books

Students also viewed these Accounting questions

Question

1. Practice giving the test before you actually use it.

Answered: 1 week ago