Corporation’s capital stock transactions for the month of January are summarized below: Jan. 1 Corporation’s capital stock was authorized to issue 50,000 preference shares with par value of 150 per share and 100,000 ordinary shares with stated value of 100 per share. The minimum requirements as to the subscription and payment were met by the 5 incorporators. 3 Cash subscription received 20,000 preference shares at 160/per share and 30,000 ordinary shares at 102/share 5 Issued 200 ordinary shares to a lawyer who drafted the Articles of Incorporation and corporate by-laws whose bill for the services rendered was 25,000 10 Received subscriptions for 10,000 ordinary shares at 104/share, receiving a 25% down payment 12 Received subscriptions for 5,000 preference shares at 155 per share, receiving a down payment of 40% 25 Collected the balance due from the subscription received on January 10 and issued the corresponding stock certificates 26 Issued 2,000 ordinary shares in exchange for a 150 square meter lot, appraised at 220,000 27 Issued 500 preference in exchange for equipment with a market price of 80,000 28 Issued 300 ordinary shares to a bank in payment for a loan made earlier in the amount of 38,000 30 Collected the balance of the subscription on January 12 with the corresponding stock certificates being issued. Required: Using the memo entry method, prepare: a. Journal entries to record the above transactions b. The Shareholder’s Equity section of the Statement of Financial Position
Corporation’s capital stock transactions for the month of January are summarized below:
Jan. 1 Corporation’s capital stock was authorized to issue 50,000
3 Cash subscription received 20,000 preference shares at 160/per share and 30,000 ordinary shares at 102/share
5 Issued 200 ordinary shares to a lawyer who drafted the Articles of Incorporation and corporate by-laws whose bill for the services rendered was 25,000
10 Received subscriptions for 10,000 ordinary shares at 104/share, receiving a 25% down payment
12 Received subscriptions for 5,000 preference shares at 155 per share, receiving a down payment of 40%
25 Collected the balance due from the subscription received on January 10 and issued the corresponding stock certificates
26 Issued 2,000 ordinary shares in exchange for a 150 square meter lot, appraised at 220,000
27 Issued 500 preference in exchange for equipment with a market price of 80,000
28 Issued 300 ordinary shares to a bank in payment for a loan made earlier in the amount of 38,000
30 Collected the balance of the subscription on January 12 with the corresponding stock certificates being issued.
Required: Using the memo entry method, prepare:
a.
b. The Shareholder’s Equity section of the
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