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Related data of Mariah Company:                                          

Authorized share capital                               5,000,000            

Retained earnings appropriated                  600,000

Retained earnings unappropriated             300,000

Revaluation surplus                                        200,000

Share premium                                                 500,000

Subscribed share capital                               1,000,000            

Subscription receivable                                 400,000

Treasury shares                                               250,000

Unissued share capital                                   2,000,000            

How much is the Shareholders' equity?

What method should we use memorandum entry or journal entry method? Or both? And why?

Why do we need to add or include the retained earnings appropriated and retained earning unappropriated in getting the shareholder's equity?

QUESTION 2

Artista issued additional shares of 500 for the service rendered by the independent CPA of the corporation in relation to Organization cost.                                     

Contract with the CPA is 10,000

Fair value of the shares is 30 each.          

Par value is 20 each.

How much is the share premium?

Why do you think that the fair value of the shares became the basis and not the contract with the CPA?

Argentina Company undertakes an initial public offering (IPO) for the listing & issuance of 60,000new shares and listing of 40,000 old existing shares.      

 

Related costs:

Consultant fee - PR                             P60,000

Documentary stamp tax                     10,000

Listing fee                                           300,000

Newspaper publication fee                 200,000

Fairness Opinion & valuation report  130,000

Other joint costs                                 375,000

SEC filing fee                                       15,000

CPA and legal fees                              420,000

Underwriting fees                               120,000

Total                                                    1,630,000       

How much is the share listing fee?

How much is the share premium?

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