BFAR corporation issued shares at a single price for P520,000.10,000 shares of its P5 par value ordinary shares having a fair value of P25 per share15,000 shares of its P7 par value preference shares having a fair value of P10 per shareCompute the proceeds that would be allocated to the ordinary shares..·

Solution:- Calculation of the proceeds that would be allocated to the ordinary shares as follows…

FAR corporation issued shares at a single price for P520,000. 10,000 shares of its P5 par value ordinary shares having a fair value of P2 15,000 shares of its P7 par value preference shares having a fair value of ompute the proceeds that would be allocated to the ordinary shares.

FAR corporation issued shares at a single price for P520,000. 10,000 shares of its P5 par value ordinary shares having a fair value of P2 15,000 shares of its P7 par value preference shares having a fair value of ompute the proceeds that would be allocated to the ordinary shares.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

BFAR corporation issued shares at a single price for P520,000.
10,000 shares of its P5 par value ordinary shares having a fair value of P25 per share
15,000 shares of its P7 par value preference shares having a fair value of P10 per share
Compute the proceeds that would be allocated to the ordinary shares.
.
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