Relay Company is permitted to issue 500,000 ordinary shares of P10 par value. During the first year of the corporation's existence, 2021, the following transactions occurred: • 50,000 ordinary shares were sold for P18 per share • In exchange for a patent worth P1,000,000, 50,000 ordinary shares were issued. The total contributed capital at the end of Relay's first year was: O P400,000 O P1,000,000 P900,000 O P1,900,000

Relay Company is permitted to issue 500,000 ordinary shares of P10 par value. During the first year of the corporation's existence, 2021, the following transactions occurred: • 50,000 ordinary shares were sold for P18 per share • In exchange for a patent worth P1,000,000, 50,000 ordinary shares were issued. The total contributed capital at the end of Relay's first year was: O P400,000 O P1,000,000 P900,000 O P1,900,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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