On June 23, 200C, Pinoy Trading owned and operated by Phil was incorporated. On this date, the balance sheet showed the following adjusted balances: Total Assets (including cash of P 30,000) P 200,000 Total Liabilities 40,000 The new corporation was authorized to issue 5,000 ordinary shares with a par value of P 100 per share. Phil made a cash subscription of 2,000 shares while the four other incorporators made a cash subscription of 500 shares each. Phil transferred his net assets to the new corporation and paid the balance of his subscription in cash. How much additional cash investment did Phil make? a. 0 b. 40,000 c. 160,000 d. 200,000
On June 23, 200C, Pinoy Trading owned and operated by Phil was incorporated. On this date, the balance sheet showed the following adjusted balances: Total Assets (including cash of P 30,000) P 200,000 Total Liabilities 40,000 The new corporation was authorized to issue 5,000 ordinary shares with a par value of P 100 per share. Phil made a cash subscription of 2,000 shares while the four other incorporators made a cash subscription of 500 shares each. Phil transferred his net assets to the new corporation and paid the balance of his subscription in cash. How much additional cash investment did Phil make? a. 0 b. 40,000 c. 160,000 d. 200,000
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 5PB: Paydirt Limestone, Incorporated was organized several years ago and was authorized to issue...
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On June 23, 200C, Pinoy Trading owned and operated by Phil was incorporated. On this date, the balance sheet showed the following adjusted balances:
Total Assets (including cash of P 30,000) P 200,000
Total Liabilities 40,000
Total Liabilities 40,000
The new corporation was authorized to issue 5,000 ordinary shares with a par value of P 100 per share. Phil made a cash subscription of 2,000 shares while the four other incorporators made a cash subscription of 500 shares each. Phil transferred his net assets to the new corporation and paid the balance of his subscription in cash.
How much additional cash investment did Phil make?
a. 0
b. 40,000
c. 160,000
d. 200,000
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