andum entry of transactions 2.Post to the Shareholder’s equity Accounts 3.Prepare the sha
andum entry of transactions 2.Post to the Shareholder’s equity Accounts 3.Prepare the sha
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Required:
1.Memorandum entry of transactions
2.Post to the Shareholder’s equity Accounts
3.Prepare the share capital section of the Shareholder’s equity as at Dec.31,2018
Transcribed Image Text:Issuance of Ordinary and Preference Shares
Villarama Corporation was organized on Jan. 1, 2018. It is authorized to issue 20,000
shares of 6%, P50 par value preference shares, and 50,000 shares of no-par ordinary
shares with a stated value of P10 per share. The following stock transactions were
completed during the year:
Jan. 10
Issued 10,000 ordinary shares for cash at P35 per share.
Mar. 1
Issued 10,000 preference shares for cash at P55 per share.
Issued 2,500 ordinary shares for land. The asking price of the
land was P90,000; the fair market value of the land was P85,000.
Apr. 1
May 1
Issued 7,500 ordinary shares for cash at P40 per share.
Issued 1,000 ordinary shares to lawyers in payment of their bill
for P50,000 pertaining to services rendered in helping the
corporation organize.
Aug. 1
Sep. 1
Issued 500 ordinary shares for cash at P60 per share.
Nov. 1
Issued 2,000 preference shares for cash at P53 per share.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 6 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education