At the beginning of current year, Lake Company was organied and with par value of P100 1. Received subacriptions at par value from incorporatues egual to 40% of the authoriaed share capital 2 Beorived a 2ss downpayment on the subecriptions fre the incorporstors 3. Received full payment on 10,000 shares originall subscribed. 4 Apatent was acquired by isuing 5,000 shares The patet had no fair value. 3 Received cash subecriptiona to 15.000 shares at PI0 pet share authoried to iaue abare capital of 50000 hans Required: pane jourmal entries to recond the transactione th o- journal entey method and present she ahanholders
At the beginning of current year, Lake Company was organied and with par value of P100 1. Received subacriptions at par value from incorporatues egual to 40% of the authoriaed share capital 2 Beorived a 2ss downpayment on the subecriptions fre the incorporstors 3. Received full payment on 10,000 shares originall subscribed. 4 Apatent was acquired by isuing 5,000 shares The patet had no fair value. 3 Received cash subecriptiona to 15.000 shares at PI0 pet share authoried to iaue abare capital of 50000 hans Required: pane jourmal entries to recond the transactione th o- journal entey method and present she ahanholders
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Problem 20-2
Transcribed Image Text:Problem 20-2 (ACP)
At the beginning of current year. Lake Company was
organined and authorized to iisue share copital of 50.000 ahares
with par value of P100.
1. Received subseriptions at par value from incorporators
équal to 40% of the authorized share capital.
2. Received a 25% downpayment on the subecriptions from
the incorporators
3. Received full payment on 10,000 shares originally
subscribed.
4. Apatent was acquired by issuing 5,000 shares. The patent
had no fair value.
A Received cash subecriptiona to 16,000 sharos at PI20 per
ahare
Required:
Prepare journal entrien to record the transactions folwi
the journal entry method and present the shanholders' equity-
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