4. The Fernandez Corporation was incorporated on September 1, 2021 and was authorized to issue share capital as follows: 200,000 shares of no par ordinary share 5,000 shares of 6% preference share at a par value of P200 The following share capital transactions took place in the months of September and October 2021. a. On September 14, subscriptions were received for the authorized ordinary shares at P30 per share on the following terms: 25% down in cash at the date of subscription, the balance is payable in three equal installments due on October 15, November 15 and December 15. On September 18, all of the preference shares are sold for cash at P220 per share. Transaction costs of P5,000 were incurred and paid. On October 15, the corporation collected the first installment of the subscription in (a). Journal entries to record the above transactions. Shareholders' equity section of the statement of financial position as of October 31, 2021. b. C. Required: (a) (b)

4. The Fernandez Corporation was incorporated on September 1, 2021 and was authorized to issue share capital as follows: 200,000 shares of no par ordinary share 5,000 shares of 6% preference share at a par value of P200 The following share capital transactions took place in the months of September and October 2021. a. On September 14, subscriptions were received for the authorized ordinary shares at P30 per share on the following terms: 25% down in cash at the date of subscription, the balance is payable in three equal installments due on October 15, November 15 and December 15. On September 18, all of the preference shares are sold for cash at P220 per share. Transaction costs of P5,000 were incurred and paid. On October 15, the corporation collected the first installment of the subscription in (a). Journal entries to record the above transactions. Shareholders' equity section of the statement of financial position as of October 31, 2021. b. C. Required: (a) (b)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The Fernandez Corporation was incorporated on September 1, 2021 and
was authorized to issue share capital as follows:
200,000 shares of no par ordinary share
5,000 shares of 6% preference share at a par value of P200
The following share capital transactions took place in the months of
September and October 2021.
a.
On September 14, subscriptions were received for the authorized
ordinary shares at P30 per share on the following terms: 25%
down in cash at the date of subscription, the balance is payable in
three equal installments due on October 15, November 15 and
December 15.
On September 18, all of the preference shares are sold for cash at
P220 per share. Transaction costs of P5,000 were incurred and
paid.
On October 15, the corporation collected the first installment of
the subscription in (a).
Journal entries to record the above transactions.
Shareholders' equity section of the statement of financial position as
of October 31, 2021.
b.
C.
Required:
(a)
(b)

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