If revaluation is used, the ₱6,000 excess implies undervalued assets. Revalue assets upward by ₱30,000 (since ₱6,000 / 20% = ₱30,000 total increase – wait, recalc carefully).
In the 2019 text, Win Ballada emphasizes three specific situations regarding admission by investment:
Recording authorized, issued, and subscribed share capital.
This illustrates why simply looking up an answer key without understanding leads to errors.
This Course Hero file includes step-by-step answers for Problems #22 through #25, covering share capital, cumulative preference shares, and shareholders' equity calculations.
Actually, in bonus method, the new total capital is ₱150,000 (old ₱120,000 + ₱30,000 cash). C’s capital is 20% of ₱150,000 = ₱30,000 – but we credited only ₱24,000? That’s a contradiction.
If revaluation is used, the ₱6,000 excess implies undervalued assets. Revalue assets upward by ₱30,000 (since ₱6,000 / 20% = ₱30,000 total increase – wait, recalc carefully).
In the 2019 text, Win Ballada emphasizes three specific situations regarding admission by investment:
Recording authorized, issued, and subscribed share capital.
This illustrates why simply looking up an answer key without understanding leads to errors.
This Course Hero file includes step-by-step answers for Problems #22 through #25, covering share capital, cumulative preference shares, and shareholders' equity calculations.
Actually, in bonus method, the new total capital is ₱150,000 (old ₱120,000 + ₱30,000 cash). C’s capital is 20% of ₱150,000 = ₱30,000 – but we credited only ₱24,000? That’s a contradiction.