Instructions: Compute for each of the items enumerated below. Number of preference shares issued for cash. 1. 2. Price per share of preference share capital issued for cash. 3. Number of ordinary share issued. 4. Average price per share of the ordinary share capital issued for cash. 5. Total preference share premium arising from issuance in exchange for equipment.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...
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Problems 8-5 (Reconstruction of Transactions)
The Golden Rule Corporation was organized on January 1, 2014 with authorized share capital
consisting of 50,000 preference shares with a par value of P50 and 1,000,000 of no-par
ordinary shares with a stated value of P10. At December 31, 2014, the ledger included the
following balances pertaining to shareholders' equity.
P
Preference Share Capital
Preference Share Premium
1,000,000
120,000
3,000,000
4,500,000
Ordinary Share Capital
Ordinary Share Capital in Excess of Stated Value
Ten thousand preference shares were issued for equipment having a fair value of P550,000.
The remaining preference shares were issued for cash. All ordinary shares were issued for
cash.
Instructions: Compute for each of the items enumerated below.
Number of preference shares issued for cash.
1.
2.
Price per share of preference share capital issued for cash.
Number of ordinary share issued.
4.
Average price per share of the ordinary share capital issued for cash.
5.
Total preference share premium arising from issuance in exchange for
equipment.
Transcribed Image Text:Problems 8-5 (Reconstruction of Transactions) The Golden Rule Corporation was organized on January 1, 2014 with authorized share capital consisting of 50,000 preference shares with a par value of P50 and 1,000,000 of no-par ordinary shares with a stated value of P10. At December 31, 2014, the ledger included the following balances pertaining to shareholders' equity. P Preference Share Capital Preference Share Premium 1,000,000 120,000 3,000,000 4,500,000 Ordinary Share Capital Ordinary Share Capital in Excess of Stated Value Ten thousand preference shares were issued for equipment having a fair value of P550,000. The remaining preference shares were issued for cash. All ordinary shares were issued for cash. Instructions: Compute for each of the items enumerated below. Number of preference shares issued for cash. 1. 2. Price per share of preference share capital issued for cash. Number of ordinary share issued. 4. Average price per share of the ordinary share capital issued for cash. 5. Total preference share premium arising from issuance in exchange for equipment.
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