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?
Answer & Explanation
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