UNIT 5 - Problems

5-1
a) Issued shares
40,000 shares x P25 1,000,000
600 shares in exchange for equipment 18,600
Amount of contributed capital 1,018,600

b) Authorized shares 120,000

Issued shares 40,600
Unissued shares 160,600

5-2 Authorized share capital 300,000

Unissued share capital 120,000
Issued share capital
Share premium
Subscribed share capital 60,000
Subscription receivable (32,000)
CASH COLLECTED

5-3 Issuance of 24,000 ordinary shares 1,200,000

Issuance of 6,000 preference shares 96,000
Share premium on subscribed shares
(2,000 x P7.00) 14,000
Total contributed capital 1,310,000
180,000
8,000

28,000
216,000