On January 1, 2021, ABC Corporation was authorized to issue 2 classes of stocks: 50,000 preference shares with par value of P 50 and 100,000 ordinary shares with par value of P 20. On January 8, 2021, ABC received subscriptions from various subscribers of 20,000 ordinary shares for P 25 per share. 30% from the subscription price were received at subscription date and the balance payable within 60 days. At call date, the balance was not paid and the shares were declared delinquent: A total of P 20,000 was paid for advertising of original unissued shares and delinquent shares and half of the total costs relates to the delinquent shares. At the public auction, ABC Corporation received bids from Jhim -10,000, Janus-9,000 and Ces-12,000. The amount from highest bidder was collected and share certificates were according issued. How many shares will the original subscriber and highest bidder receive?

On January 1, 2021, ABC Corporation was authorized to issue 2 classes of stocks: 50,000 preference shares with par value of P 50 and 100,000 ordinary shares with par value of P 20. On January 8, 2021, ABC received subscriptions from various subscribers of 20,000 ordinary shares for P 25 per share. 30% from the subscription price were received at subscription date and the balance payable within 60 days. At call date, the balance was not paid and the shares were declared delinquent: A total of P 20,000 was paid for advertising of original unissued shares and delinquent shares and half of the total costs relates to the delinquent shares. At the public auction, ABC Corporation received bids from Jhim -10,000, Janus-9,000 and Ces-12,000. The amount from highest bidder was collected and share certificates were according issued. How many shares will the original subscriber and highest bidder receive?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 10MC

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