Items 4 through 9 are based on the following data:

Dadiangas Farmingtown Corporation is authorized by its charter to issue 10% preferred stocks at P100 par value, P1, 000,000 and 15,000 shares of common stock at P100 par value.

4. How many shares of 10% preferred stocks that the corporation is authorized to issue?

a) 10,000 shares

b) 15,000 shares

c) 20,000 shares

d) Some other answer

5. How much is the authorized capital stock-common? a) 1,000,000

b) 1,500,000 c) 2,000,000

d) some other answer

6. What is the minimum shares?

Preferred number of shares to be subscribed for both preferred and common?

preferred Common

a) 2,500 shares 3,750 shares

b) 3,000 shares 4,800 shares

c) 4,000 shares 5,250 shares

d) 5,250 shares 5,250 shares

7. How much is the minimum payment required by SEC on the subscription for both?

Preferred Common

a. 62,500 93,750

b. 75,000 120,000

c. 100,000 131,250

D. some other answer

8. If Cherry Lyn Balagtas, (not an incorporator) subscribed to P100 shares of common stock P105 but pays only P 5,000, at what amount will be charged to "premium on capital stock"?

a) 500

b) 10,000

c) 10,200

d) 10,500

9.(Refer to item 8) If Cherry Lyn Balagtas makes full payment of her subscription balance, atwhat amount is credited to "Capital Stock" upon issuance of certificate?

a) 9,500

b) 10,000

c) 10,500

d) some other answers