Reference no: EM132971957

Question - Colacola Corporation is authorized by its charter to issue 5,000 ordinary shares at P100 par value.

Required -

1. How much of the authorized share capital should be subscribed upon its incorporation?

2. How much of the subscribed share capital is required by SEC to be paid up upon its incorporation?

 3. If Mr. Ronald Desierto subscribes 500 shares at P110 per share but did not make any down payment, how much amount will be charged to "Premium on share capital" account?

4. If Ronald Desierto makes full payment of his subscription, at what amount should Share Capital be credited upon issuance of certificates?

5. Marilli Salva has subscribed for 100 shares and after paying the half price of her subscriptions, she has defaulted. How many shares are considered delinquent?

6. (Refer to data no. 5) Assume that the following persons bid for the delinquent shares and are willing to pay the subscription balance plus incidental expenses of P250.

Carlos Dalumpines 80 shares

Gemma Goyha 85 shares

Josephine Lada 70 shares

Who is the highest bidder?

7. (Refer to data no. 6) After the highest bidder pays the price, the certificate of stock will then be issued. How many shares can Salva be entitled to receive?