Exercise 3 – 3 (Issuance of Various Classes of Share Capital for Cash)   The Bien Corporation was organized on June 1, 2019, and is authorized to issue 500,000 shares of ordinary share capital. Subsequently, 220,000 shares were issued at P20 per share   Instructions: Prepare the journal entries to record authorized capital and the issuance of the 220,000 shares using the memorandum entry method under each of the following independent assumptions:   Each ordinary share has a par value of P40 Each ordinary share has a stated value of P15 The ordinary shares have no par and no stated value.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Exercise 3 – 3 (Issuance of Various Classes of Share Capital for Cash)

 

The Bien Corporation was organized on June 1, 2019, and is authorized to issue 500,000 shares of ordinary share capital. Subsequently, 220,000 shares were issued at P20 per share

 

Instructions: Prepare the journal entries to record authorized capital and the issuance of the 220,000 shares using the memorandum entry method under each of the following independent assumptions:

 

  1. Each ordinary share has a par value of P40
  2. Each ordinary share has a stated value of P15
  3. The ordinary shares have no par and no stated value.
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