What is the balance of the ordinary share premium after considering the above transactions? What is the
Fantastic news! We've Found the answer you've been seeking!
Question:
What is the balance of the ordinary share premium after considering the above transactions?
What is the balance of the preference share premium after considering the transactions of Forgiveness Inc.?
Transcribed Image Text:
Use the following information in answering the next item(s): FORGIVENESS INC. is authorized to issue 400,000 of P10 par value ordinary shares and 300,000 of P15 par value preference shares. The company has the following transactions: a) b) c) d) e) f) Issued 30,000 ordinary shares at P20 per share; received cash. Issued 50,000 ordinary shares in exchange for a building valued at P900,000 and land valued at P300,000. (The building was originally acquired by the investor for P750,000 and has P250,000 of accumulated depreciation; the land was originally acquired for P90,000.) 20,000 ordinary shares were sold under share subscriptions at P12 per share. Exchanged 30,000 ordinary and 10,000 preference shares for a building with a fair value of P600,000. The fair value of the ordinary and preferred shares as of that date is P20 and P30, respectively. Issued 5,000 ordinary shares and 2,000 preference shares for a lump-sum price of P120,000. At that date, the fair value of the preference shares cannot be determined while the fair value of the ordinary shares is P15 per share. Issued 800 preferred shares, selling at P25 per share, to lawyers for services in connection with the organization of the corporation. The fair value of the legal services was P15,000. Issue cost is P3,500. Use the following information in answering the next item(s): FORGIVENESS INC. is authorized to issue 400,000 of P10 par value ordinary shares and 300,000 of P15 par value preference shares. The company has the following transactions: a) b) c) d) e) f) Issued 30,000 ordinary shares at P20 per share; received cash. Issued 50,000 ordinary shares in exchange for a building valued at P900,000 and land valued at P300,000. (The building was originally acquired by the investor for P750,000 and has P250,000 of accumulated depreciation; the land was originally acquired for P90,000.) 20,000 ordinary shares were sold under share subscriptions at P12 per share. Exchanged 30,000 ordinary and 10,000 preference shares for a building with a fair value of P600,000. The fair value of the ordinary and preferred shares as of that date is P20 and P30, respectively. Issued 5,000 ordinary shares and 2,000 preference shares for a lump-sum price of P120,000. At that date, the fair value of the preference shares cannot be determined while the fair value of the ordinary shares is P15 per share. Issued 800 preferred shares, selling at P25 per share, to lawyers for services in connection with the organization of the corporation. The fair value of the legal services was P15,000. Issue cost is P3,500.
Expert Answer:
Answer rating: 100% (QA)
a Issued 30000 ordinary shares at P20 per share received cash The ordinary share premium is calculated as the difference between the issue price and t... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these accounting questions
-
Electrons with de-Broglie wavelength fall on the target in an X-ray tube. The cut-off wavelength of the emitted X- rays is (A) 20 (C) 20 = 2mc h 2mc2 h (B) 2 2h mc (D) =
-
Use the sign test to test the hypothesis that the assessed value has changed between 2006 and 2010. Use = 0.05. Do you think land values in a large city would be normally distributed? Ward A B C D E...
-
The Bigfork Company is a retail company that began operations on January 1,2018. The Bigfork Company is authorized to issue 1,000,000 shares of P10 par value ordinary share and 500,000 shares of 3%,...
-
Prove Theorem 9.7.1. Theorem 9.7.1 Principal Axes Theorem for ft3 Let ax2 + by2 + cz2 + 2dxy + 2exz + 2fyz + gx + hy + iz + j = 0 be the equation of a quadric Q, and let xTAx = ax2 + by2 + cz2 + 2dxy...
-
Repeat the previous problem if the flow inside the apparatus is liquid water, 1000 kg/m3, instead of air. Find the pressure difference between the two holes flush with...
-
What are some examples of nonfinancial information that is often used by management in performing its duties?
-
The following sale related transactions for Beautiful Decor, Inc., occurred during the month of April. Requirement 1. Journalize the transactions for Beautiful Decor, Inc. Omit explanations. Apr 3...
-
Consider atmospheric air at 25C and a velocity of 25 m/s flowing over both surfaces of a 1-m-long flat plate that is maintained at 125e. Determine the rate of heat transfer per unit width from the...
-
Question 1 The employees at MyBike Enterprise are integral to company success. The company builds custom bicycles for its customers. Its ability to build quality bicycles to specification has become...
-
Suppose that TechnoTCL is considering a new project. They are trying to determine the required rate of return for their debt and equity holders. See the information below: A 6 . 5 % ?percent annual...
-
A zero-coupon bond has a yield to maturity of 5% and a par value of $1,000. If the bond matures in 8 years, what should be its price? What is the market price of a 12-year zero coupon bond with a par...
-
condiser the system of linear equation x + y = 9 . 0 0 . 5 0 x + 0 . 2 0 y = 3 . 0 0 find the vlaues of x and y
-
List describe, and give an example of each of the four e-procurement methods and argue when each might be used. 2- Describe the three steps in target marketing. Explain what factors/options should be...
-
Simplify. -3(r+4)+5r
-
1. Let be the path from 3 + to 2 travelling along a straight line. Compute the following integrals: . . (2 + 3 2 ) . 3 2. Let be the path that goes counterclockwise once around a circle of radius 3...
-
Perform a Multi-Atribute Decision analysis using the following utility table and k values. Which combination of Overrun Time and Extra Cost is the best choice? Time Overrun Utility Cost Utility 0 1...
-
Mirabel Enterprises manufactures a highly customized product in its Tacoma factory. The company uses direct labor hours in its predetermined overhead rate. Estimated direct labor hours were 21,600...
-
Convert the numeral to a HinduArabic numeral. A94 12
-
The financial statements of Rolls-Royce plc (aero engine manufacturer) for the year ended 31 December 1999 disclose the following matters in relation to the directors: (a) Remuneration committee The...
-
Oxlag plc, a manufacturer of pharmaceutical products, has the following research and development projects on hand at 31 January 20X2: (A) A general survey into the long-term effects of its sleeping...
-
Helvatia GmbH is a Swiss company which is a wholly owned subsidiary of Corolli, a UK company. Helvatia GmbH was formed on 1 November 2005 to purchase and manage a property in Zürich in...
-
A shaft running at \(500 \mathrm{rpm}\) carries a pulley \(1 \mathrm{~m}\) diameter and drives another pulley by means of ropes with a speed ratio of 2:1. The drive transmits \(200 \mathrm{~kW}\)....
-
A flat belt drive is required to transmit \(20 \mathrm{~kW}\) at \(300 \mathrm{rpm}\) of \(2 \mathrm{~m}\) diameter pulley. The angle of contact is \(170^{\circ}\) and coefficient of friction between...
-
If the difference between tight and slack side tensions for a leather belt does not exceed \(100 \mathrm{~N} / \mathrm{cm}\) of width for a belt \(5 \mathrm{~mm}\) thick, find the maximum stress in...
Study smarter with the SolutionInn App