APPLE Company was organized at the beginning of the current year and was authorized to issue share capital of 200,000 ordinary shares with par value of ₱20. The following transactions occurred during the year: • Received subscriptions at par value from incorporators equal to 45% of the authorized share capital • Received 60% down payment on the subscriptions from the incorporators • Received full payment on 50,000 shares originally subscribed • An equipment was acquired by issuing 5,000 shares. Share are currently traded at this time at ₱25/share. • Received subscriptions to 10,000 shares at ₱28/share • Partially collected 50% of the amount subscribed on the latest subscriptions. • Collected in full 90% of the latest subscription. 10% defaulted, thus the corporation offered the shares on a public auction and awarded it to the highest bidder who paid the delinquency balance and the incurred ₱5,000 auction expense. • Net income for the year-ended was ₱800,000. a. Prepare all necessary entries for the year.
APPLE Company was organized at the beginning of the current year and was authorized to issue share
capital of 200,000 ordinary shares with par value of ₱20. The following transactions occurred during
the year:
• Received subscriptions at par value from incorporators equal to 45% of the authorized share
capital
• Received 60% down payment on the subscriptions from the incorporators
• Received full payment on 50,000 shares originally subscribed
• An equipment was acquired by issuing 5,000 shares. Share are currently traded at this time
at ₱25/share.
• Received subscriptions to 10,000 shares at ₱28/share
• Partially collected 50% of the amount subscribed on the latest subscriptions.
• Collected in full 90% of the latest subscription. 10% defaulted, thus the corporation offered the
shares on a public auction and awarded it to the highest bidder who paid the delinquency
balance and the incurred ₱5,000 auction expense.
• Net income for the year-ended was ₱800,000.
a. Prepare all necessary entries for the year.
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