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
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Determine the increase in share premium as a result of this transaction
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- Provide complete solution: ABC Company issued 1,000 shares with P5 par to XYZ Company as compensation for 1,000 hours of legal services performed. XYZ Company usually bills P150 per hour for legal services. On the date of issuance, the share was trading on a public exchange at P140. By what amount should the share premium account increase as a result of the transaction? A. P 160,000B. P 145,000C. P 135,000D. P 155,000BCA Company issued 1,000 shares with P 5 par to Atty Bryant as compensation for 1,000 hours of legal services performed Atty Bryant usually bills P 160 per hour for legal services. On the date of issuance, the share had a fair value of P 140. By amount would the share premium account increase as a result of the transaction?*Marco Company issued 1,000 shares with P 5 par to Benn as compensation for 1,000 hours legal services performed. Benn usually bills P160 per hour for legal services. On the date of issuance, the share was trading on a public exchange at 140. By what amount should the share premium account increase as a result of the transaction? Show your solution.
- Ogag company issued 1,000 shares of its P5 par value ordinary shares as payment for 1,000 hours of legal services performed. The fair value of the legal services was P160,000. On the date of issuance, the company’s shares were trading on a public exchange at P140 per share. Determine the increase in the company’s equity as a result of this transaction.b) East Company issued 1,000 shares with P5 par to Howe as compensation for services. By what amount should the share premium accoùnt increase as a result 1. Answer the following questions: a) Ivy Company provided the following accounts at year-end: Preference Share Capital, P100 par P5,000,000 Ordinary Share Capital, P10 par Subscribed Preference Share Capital Subscribed Ordinary Share Capital Subscriptions Receivable - Ordinary Subscriptions Receivable -Preference Share Premium – Preference Share Share Premium – Ordinary Share 2,000,000 1,800,000 1,000,000 180,000 190,000 300,000 220.000 680,000 Treasury Share - Preference (700 shares at cost) Share Premium - Preference Treasury Share 850,000 Retained Earnings 2,000,000 How much is total shareholders' equity at yearend? b) East Company issued 1,000 shares with P5 par to Howe as compensation fo. 1.000 hours of legal services performed. Howe bills P160 per hour for his loet services. By what amount should the share premium accoùnt…Virma Corporation sold to a subscriber 500 shares of its P30 par value common stock at P32 per share receiving a 30% down payment. In recording this transaction, A. Ordinary share will be credited in the amount of P15,000 B. Ordinary share will be credited in the amount of P16,000 C. Subscribed share capital will be credited in the amount of P15,000 D. Share premium will be credited in the amount of P4,500 Leon Corporation sold 500 shares of its P40 par value preferred stock for cash at P50 per share. In recording this transaction, there would be a A. Credit to preference share capital for P25,000 B. Credit to preference share capital for P20,000 C. Credit to subscribed preference share capital for P20,000 D. Credit to share capital in excess of stated value for P5,000 Luningning Corporation sold for cash 400 shares of preferred stock with a par value of P50 per share at P56 per share. Also, 600 shares of common stock with no…
- 20.Corridor Company issued 6,000 share of its P100 par ordinary share to Max Las compensation for 1,000 hours of legal services performed, Max L usually bills P500 per hour for legal services. On this date of issuance, the share was selling at a public trading at P150 per share. By what amount should the share premium account of Corridor Company increase as a result of the issuance of those shares? A. P3,000,000 B. P600,000 C. P300.000 D. P900,000 The Magic Lamp Corporation was incorporated on January 1, 2021, with the following authorized capitalization: 40,000 ordinary shares, no par value, stated value P40 per share 10,000 shares of 5% cumulative preference share, par value P10 per share During 2021, Magic Lamp issued 24,000 ordinary share for a total of P1,200,000 and 6,000 preference share at P16 per share, In addition, on December 31, 2021, subscriptions for 2,000 preference shares were taken at a purchase price of P17. These subscribed share were paid for on January 2. 2022.…Sloan Co. issued 1,000 shares of its P5 par ordinary share to Mercy West as compensation for 1,000 hours of legal services performed. Mercy West usually bills P160 per hour for legal services. However, other lawyers have different bill prices for essentially the same legal service. On the date of issuance, the stock was trading on a public exchange at P140 per share. By what amount should the share premium account increase as a result of this transaction? a. 135,000 b. 140,000 c. 155,000 d. 160,000On July 1, 2018, Alaska Corp. issued 6,000 shares of its P 100 par ordinary share to Atty. Black as compensation for 1,000 hours of legal services performed during incorporation. Atty. Black usually bills P 500 per hour for legal services. On this date of issuance, the share was selling at a public trading at P 150 per share. By what amount should the Share Premium account of Alaska Corp. increase as a result of the issuance of those shares?
- On July 1, 2020, Phoenix company offers to issue their accountant 800 common shares at their current market value of $12 per share, to equal the fair value of $9,600. The accountant accepts the offer of shares in exchange for accounting services. Record the journal entry for the issuance of shares. Select one: a. Debit Cash $9,600, Credit Common Shares $9,600 b. Debit Accounting Fees Expense $9,600, Credit Cash $9,600 c. Debit Accounting Fees Expense $9,600, Credit Common Shares $9,600 d. Debit Cash $9,600, Credit Service Revenue $9,600JB Ltd was incorporated on 1 July 2021 and issued a prospectus inviting applications for 200,000 ordinary shares at an issue price of $10. The shares are payable as follows: $5 payable on application $2 payable on allotment ● ● ● ● $3 payable on call to be made 30th September 2021 Share issue costs were $10,500 and legahcosts were $1,500 The transactions for the period were as follows: Date Transaction 31/08/2021 Applications were received for 260,000 shares. 3/09/2021 Applications for 60,000 were rejected by the directors and the application money was refunded to the shareholders concerned. The Company allotted 200,000 shares to the remaining applicants All the allotment money s received. Share issue and legal costs were paid in cash The call was made on the shares, payable by 31 October 2021 Call money was received from the shareholders of only 180,000 shares The remaining 20,000 shares were forfeited. The forfeited shares were offered to an investment company at a price of $8 per…XYZ SAOG has in issue 5 million, RO 1 equity share. The company decided to make a bonus issue in the ratio of 2 for 5 shares held. Prior to issue of bonus the company had Share premium of OMR 2,500,000. Which of the following journal entry is Correct in respect of issuing bonus shares? a. Debit Share premium OMR 2,000,000 Credit Share Capital OMR 2,000,000 b. Debit Share capital OMR 7,000,000 Credit Share premium OMR 7,000,000 c. Debit Share capital OMR 2,500,000 Credit Share premium OMR 2,500,000 d. Debit Share premium OMR 500,000 Credit Share Capital OMR 500,000