Problem 5.Brian Baluya was a subscriber of Global Appliance Corporation for 300 ordinary shares at P150 par value pershare. He failed to pay his subscription balance of P27,000 which is equivalent to 180 shares despite lawfulcalls and notices being sent to him.The corporation declared all the shares to be delinquent and advertised this to an auction sale. Three (3)bidders were received all in sealed envelopes and signified their intentions to pay the subscription balance ofP27,000 plus advertising expenses of P560 but differ on the share that each bidder wanted to acquire:Melanie Buenzuelan 170 sharesThelma Ciudadano 178 sharesGervacio Piator180 sharesAnswer the following questions:1. How many shares are declared delinquent?2. Who is the highest bidder in the auction sale?3. How much cash that subscriber Brian Baluya has paid to the corporation before the subscriptions becomedelinquent?4. What is the journal entry to record the delinquency sale of Brian Baluya?5. After the auction sale and upon issuance of certificates of shares, how many shares shall be issued to BrianBaluya?6. After the auction sale and upon issuance of certificates of shares, how many shares shall be issued to thehighest bidder?7. How many share certificates shall be issued?

Since multiple subpart questions are asked , we will solve 1st sub 3 parts for you as per prescribed…

Answered: Brian Baluya was a subscriber of Global…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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