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Homework answers / question archive / Redemption Island Corporation is authorized to issue 750,000 ordinary shares at P 7
Redemption Island Corporation is authorized to issue 750,000 ordinary shares at P 7.50 per share. The following transactions occurred during its first year of operation January Received from incorporators subscription for 450,000 ordinary shares at P 10.00 with 60% downpayment. Also, 50 shares were issued at par for the pre-operating expense incurred by one of the incorporators. February Issued 45,000 ordinary shares at P 8.50. March Issued 50,000 ordinary shares in exchange for equipment worth P 425,000 April Collected the balance of the subscription from January. Required: Considering the transactions above, compute for the following: (1) Ordinary Share Capital -
| (1). | Ordinary share capital=Ordinary shares issued*Par value | ||||
| Ordinary shares issued: | |||||
| Shares | |||||
| Jan: | |||||
| Received from subscribers | 450000 | ||||
| Pre-operating expense | 50 | ||||
| Feb: | |||||
| Issued | 45000 | ||||
| Mar: | |||||
| Issued for equipment | 50000 | ||||
| Total | 545050 | ||||
| Ordinary share capital=545050*7.50=$ 4087875 |
