La Vida Corporation issued 18,000 shares of no-par value ordinary shares for €29.50 per share.Which of the following statements is true?

Question

Quizplus · Accepted Answer

The share capital-ordinary account will increase by €531,000, which is calculated by multiplying the number of shares issued (18,000) by the issue price per share (€29.50). There is no information provided to suggest that the share premium-ordinary account or retained earnings account will be affected, and the cash account will only increase by the amount of cash received from the issuance of the shares (18,000 x €29.50 = €531,000), which is reflected in the increase of the share capital-ordinary account.

La Vida Corporation Issued 18,000 Shares of No-Par Value Ordinary