Reference no: EM132760205
On January 2, 2020, Centi Corporation was incorporated in the Philippines. The corporation was authorized to issue 100,000 shares of P5 par value common stock and 10,000 shares of P100 par value, cumulative, and nonparticipating preferred stock.
During 2020, the firm completed the following transactions:
- Jan. 8 Accepted subscriptions for 40,000 shares of common stock at P12 per share. Down payment on the subscribed stock totaled P150,000.
- Jan. 30 Issued 4,000 shares of preferred stock in exchange for the following assets: machinery with a fair market value of P35,000, a factory with a fair market value of P110,000, and land with an appraised market value of P295,000.
- April 25 Collected the balance o f the subscription receivable and issued the shares.
- June 30 Purchased 2,200 shares of common stock at P18 per share.
- Sept. 20 Sold the 2,200 shares of common stock at P21 per share.
- Dec. 31 Closed the income summary to retained earnings. The income for the period was P88,000.
Problem 1: At year-end, how much is the contributed capital?
a. P913,400
b. P920,000
c. P688,000
d. P926,600
Problem 2: At year-end, how much is total stockholders' equity?
a. P1,011,400
b. P1,014,600
c. P926,600
d. P930,000