2. LAVENDER Corporation issued 20,000 shares of its P70 par valueordinary share capital and 8,000 of its P80 par value preference sharecapital for a total amount of P1,800,000. At this date, the company'sordinary shares are selling at P80 per share and the preference shares areat P100 per share. What amount of the proceeds should be allocated tothe preference shares? *P 800,0009 640,000400,0009 600,000

Correct option is C. i.e P400,000

Answered: 2. LAVENDER Corporation issued 20,000…

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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A company issued 20,000 shares of its P70 par value ordinary share capital and 8,000 of its P80 par value preference share capital for a total amount of 1,800,000. At this date, the company’s ordinary share capital was selling P 80 per share and the preference share capital was selling for P100 per share. What amount of the proceeds should be allocated to the preference share capital?
CFAS Company issued 100,000, P50 par value, ordinary shares and 20,000, P100 par value, preference shares for a total consideration of P12,900,000. At this date, the ordinary share was selling for P100 per share and the preference share was selling for P250 per share. What amount of the proceeds should be allocated to share premium preference shares?
Venus Company issued 20,000 shares of its P70 par value ordinary shares and 8.000 shares of its P80 par value preference share capital for a total of P1,800.000. At this date, the company's ordinary shares were selling at P80 per share and the preference was selling at P100 per share. (1) What amount of the proceeds should be allocated to the preference shares?*
2. LAVENDER Corporation issued 20,000 shares of its ₱70 par value ordinary share capital and 8,000 of its ₱80 par value preference share capital for a total amount of ₱1,800,000. At this date, the company's ordinary shares are selling at ₱80 per share and the preference shares are at ₱100 per share. What amount of the proceeds should be allocated to the preference shares? a. ₱ 600,000 b. ₱ 800,000 c. ₱ 640,000 d. ₱ 400,000
Mall Company issued 60,000, P50 par value, ordinary shares and 20,000, P100 par value, preference shares for a total consideration of P7,500,000. At this date, the ordinary share was selling for P100 per share and the preference share was selling for P150 per share. What amount of the proceeds should be allocated to the preference shares? P1,875,000 P2,000,000 P3,000,000 P2,500,000
18. Mall Company issued 60,000, P50 par value, ordinary shares and 20,000, P100 par value, preference shares for a total consideration of P7,500,000. At this date, the ordinary share was selling for P100 per share and the preference share was selling for P150 per share. What amount of the proceeds should be allocated to the preference shares? Group of answer choices P2,000,000 P1,875,000 P2,500,000 P3,000,000
Answer with computation and explanation If the total authorized share capital is P1,000,000 at P10 par, the unissued share capital is 25,000 shares, and all the issued shares were sold at P15, then the total shareholders' equity before any operation activities is a 2 750,000. b P1,125,000 c. P375,000. d. P250,000.
BFAR Corp. has the following information in its shareholders' equity: . Preference Share Capital, P100 par value: P2,000,000 . Share Premium - Preference: P100,000 • Share Dividend Distributable - Preference: P350,000 Ordinary Share Capital, P10 par: P50,000 Share Premium - Ordinary: P40,000 . Subscribed Share Capital - Ordinary: P150,000 • Subscriptions Receivable - Ordinary: $23,000 . Accumulated Profits: P300,000 How much is the legal capital? . .
Tiktok Company issued 10,000 shares of its P5 Par value common stock having market value of P25 per share and 15,000 shares of its P15 par value preferred stock having a market value of P20 per share for a lump sum of P480,000. How much of the proceeds would be allocated to the common stock? a. P250,000 b. P255,000 c. P218,182 d. P50,000
2. Harmony Corporation declared share dividends of 1 share for every 5 shares owned on its 200,000 issued and outstanding shares with a par value of P50 per share. at the time of declaration, the market value of ordinary shares was P80 per share and P100 per share at the time the shares were issued. What amount should be charged to Retained Earnings account and credit liability accounts, respectively? Group of answer choices 2,000,000 and -0- 2,500,000 and 2,500,000 4,000,000 and -0- 4,000,000 and 4,000,000
Integrity Company, a newly formed company, had the following shares issued and outstanding as of April 1, 2022: Ordinary share, P20 par (20,000 shares originally issued for P60 per share) Preference share, P50 par (6,000 shares originally issued for P100 per share) How much is the Ordinary Share Capital, Preference Share Capital, and Share Premium, respectively? a. P400,000; P300,000; and P1,100,000 b. P1,200,000; P300,000; and P300,000 c. P400,000; P600,000; and P800,000 d. P1,200,000; P600,000; and P0
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…

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