just question 25 only 7-7Papaya Corporation issued its 3,000 ordinary shares in exchange for land which has a fairmarket value of P350,000. The par value per share is P100 while the market value per shareis P120.Q-23 - How much amount of share premium that Papaya Corporation should recognize?a) P20,000c) P60,000P70,000b) P50,000d)7-8Melon Corporation issued its 1,000 ordinary shares for legal services in forming the saidcorporation. The par value per share is P100 and the fair market value is P130. The cost ofthe services is not known.Q-24 How much would be debited to legal expenses?a) P100,000b) P130,0007-9a) P4,900,000b) P5,100,000c) P140,000d) P150,000The account below appears in the December 31, 20A trial balance of Metro Cagayan SalesCorporation:Authorized Ordinary ShareUnissued Ordinary ShareSubscribed Ordinary ShareSubscription Receivable-OrdinaryShare PremiumAccumulated Profits (Losses) UnappropriatedAccumulated Profits (Losses) AppropriatedTreasury Share at CostP5,000,0002,000,0001,000,000400,000500,000c) F5,500.000.) PS,600,000600,000300,000Q-25 In its December 31,20A Balance Sheet, Metro Cagayan Sales Corporation shouldreport total shareholders' equity of-100,000

Total Shareholders' Equity = Authorized Ordinary Share - unissued ordinary share + Subscribed…

The account below appears in the December 31, 20A trial balance of Metro Cagayan Sales Corporation: Authorized Ordinary Share Unissued Ordinary Share Subscribed Ordinary Share Subscription Receivable-Ordinary Share Premium Accumulated Profits (Losses) Unappropriated Accumulated Profits (Losses) Appropriated Treasury Share at Cost a) P4,900,000 b) P5,100,000 PS,000,000 2,000,000 1,000,000 400,000 500,000 c) F5,500.000 .) PS,600,000 600,000 300,000 Q-25 In its December 31,20A Balance Sheet, Metro Cagayan Sales Corporation should report total shareholders' equity of- 100,000

The account below appears in the December 31, 20A trial balance of Metro Cagayan Sales Corporation: Authorized Ordinary Share Unissued Ordinary Share Subscribed Ordinary Share Subscription Receivable-Ordinary Share Premium Accumulated Profits (Losses) Unappropriated Accumulated Profits (Losses) Appropriated Treasury Share at Cost a) P4,900,000 b) P5,100,000 PS,000,000 2,000,000 1,000,000 400,000 500,000 c) F5,500.000 .) PS,600,000 600,000 300,000 Q-25 In its December 31,20A Balance Sheet, Metro Cagayan Sales Corporation should report total shareholders' equity of- 100,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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…
7-7 Papaya Corporation issued its 3,000 ordinary shares in exchange for land which has a fair market value of P350,000. The par value per share is P100 while the market value per share is P120. Q-23 - How much amount of share premium that Papaya Corporation should recognize? a) P20,000 P50,000 c) P60,000 d) P70,000 b) 7-8 Melon Corporation issued its 1,000 ordinary shares for legal services in forming the said corporation. The par value per share is P100 and the fair market value is P130. The cost of the services is not known. Q-24 How much would be debited to legal expenses? a) P100,000 b) P130,000 7-9 The account below appears in the December 31, 20A trial balance of Metro Cagayan Sales Corporation: Authorized Ordinary Share Unissued Ordinary Share Subscribed Ordinary Share Subscription Receivable-Ordinary Share Premium a) P4,900,000 b) P5,100,000 c) P140,000 d) P150,000 Accumulated Profits (Losses) Unappropriated Accumulated Profits (Losses) Appropriated Treasury Share at Cost…
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.…
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