Pat issued 1,000 shares of its P5 par value ordinary shares to Nenita a compensation for 1,000 hours of legal services performed. Nenita usu bills P160 per hour for legal services. On the date of issuance, the sha were trading on a public exchange at P140 per share. Determine the increase in share premium as a result of this transactie

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 7EB: Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the...
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Determine the increase in share premium as a result of this transaction

Pat issued 1,000 shares of its P5 par value ordinary shares to Nenita as
compensation for 1,000 hours of legal services performed. Nenita usually
bills P160 per hour for legal services. On the date of issuance, the shares
were trading on a public exchange at P140 per share.
Determine the increase in share premium as a result of this transaction.
O P140,000
O P160,000
P135,000
O P155,000
Transcribed Image Text:Pat issued 1,000 shares of its P5 par value ordinary shares to Nenita as compensation for 1,000 hours of legal services performed. Nenita usually bills P160 per hour for legal services. On the date of issuance, the shares were trading on a public exchange at P140 per share. Determine the increase in share premium as a result of this transaction. O P140,000 O P160,000 P135,000 O P155,000
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