Barbie Corporation was formed on April 1, 2020. The general ledger accounts for the Barbie Corporation show the following activities for the first month of operations: (see photo) There were no other transactions during April. The total preference shares issued and subscribed represents 50% of the preference shares authorized. The ordinary shares issued for cash represents 1/4 of the ordinary shares authorized. Based on the information above, answer the following: How much is the total legal capital? How much is the total contributed capital?
Barbie Corporation was formed on April 1, 2020. The general ledger accounts for the Barbie Corporation show the following activities for the first month of operations: (see photo) There were no other transactions during April. The total preference shares issued and subscribed represents 50% of the preference shares authorized. The ordinary shares issued for cash represents 1/4 of the ordinary shares authorized. Based on the information above, answer the following: How much is the total legal capital? How much is the total contributed capital?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Barbie Corporation was formed on April 1, 2020. The general ledger accounts for the Barbie Corporation show the following activities for the first month of operations: (see photo)
There were no other transactions during April.
The total
Based on the information above, answer the following:
- How much is the total legal capital?
- How much is the total contributed capital?
Transcribed Image Text:Preference Share Capital, P50 par
(2)
(4)
(10)
Cash
(1)
(4)
(7)
(9)
81,250
35,000
40,425
103,500
100,000
25,000
50,000
Ordinary Share Capital, no-par, P5 stated value
(1)
(3)
(8)
Pre-operating Expenses
5,400
62,500
4,000
17,500
(3)
Land
150,000
Subscribed Preference Share Capital
50,000 (6)
(2)
(10)
125,000
Subscriptions Receivable – Ordinary
53,900 (7)
Subscribed Ordinary Share Capital
17,500 (5)
(5)
40,425
(8)
35,000
Subscriptions Receivable – Preference
172,500 (9)
Share Premium – Preference
(2)
(4)
(6)
(6)
103,500
50,000
10,000
47,500
Share Premium - Ordinary
(1)
(3)
(5)
18,750
1,400
18,900
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