1. Avalanche Inc. revealed the following information for the year ended December 31. 2021 Preference share. P100 par-P2.4 million; Share premium, preference - P700,000; Ordinary share, P15 par-P3.5 million, Share premium, ordinary-P1.5 million. Subscribed ordinary share - P100,000, Retained earnings - P2 million, Subscription receivable, ordinary - P20,000 How much is the legal capital? A.P6 million B.PB 1 million CP5.9 million D.P8 2 million
1. Avalanche Inc. revealed the following information for the year ended December 31.
2021
Share premium, preference - P700,000;
Ordinary share, P15 par-P3.5 million,
Share premium, ordinary-P1.5 million.
Subscribed ordinary share - P100,000,
Subscription receivable, ordinary - P20,000
How much is the legal capital?
A.P6 million
B.PB 1 million
CP5.9 million
D.P8 2 million
2.At the beginning of 2021, DAI Corp. was organized with authorized capital of 200,000, P500 par value shares. The following transactions transpired during its first year of business.
February 4- Issued 15.000 shares at P510 per share
April 10- Issued 3,000 shares for services received (FMV of the services is P1.7 million).
October 23-Issued 5,000 shares in exchange for a land (FMV) the land is P3 million)
What amount should be reported as share premium?
A.11.500.000
B. 23.000
C.850.000
D.12.350.000
3. At the beginning of 2021, DAI Corp. was organized with authorized capital of 200,000, P500 par value shares. The following transactions transpired during its first year of business.
February 4- Issued 15,000 shares at P510 per share. million)
April 10 - Issued 3,000 shares for services received (FMV of the services is P1.7 October 23- Issued 5,000 shares in exchange for a land (FMV of the land is P3 million)
What amount should be reported as share capital?
A.11.500.000
B.850.000
C.23.000
D.12 350 000
4.At the beginning of the year 2021, Algorand Co. had 100,000 ordinary shares authorized and 50,000 shares issued and outstanding. The company had the following equity transactions during 2021:
January 31, declared and issued 20% share dividends
May 1. purchased 6,000 of the shares issued
September 30, reissued 3,000 treasury shares
November 30, declared a 3-for-1 share split
How many shares are issued as of year-end?
A.60.000 shares
B. 20.000 shares
C.171,000 shares.
D..180.000 shares
E.19.000 shares
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