Exercise 3 – 7 (Issuance of Share Capital on a Subscription Basis) The Sales Co. was organized on June 1, 2019, with an authorized capital of 400,000 ordinary shares with a par value of P20. The following are selected transactions of the corporation during September: Sept. 1 Received subscription for 120,000 shares at P25 per share. A down payment of 40% was received from the subscribers. The balance is due in three equal installments. 8 Issued 23,000 shares in exchange for land valued at P750,000. 10 Received the first installment from the subscribers. 20 Received the second installment due from the subscribers. 30 Received the final installment from all subscribers and a share of stock was issued. Instructions: Prepare journal entries to record the preceding transactions.
Exercise 3 – 7 (Issuance of Share Capital on a Subscription Basis)
The Sales Co. was organized on June 1, 2019, with an authorized capital of 400,000 ordinary shares with a par value of P20.
The following are selected transactions of the corporation during September:
Sept. 1 Received subscription for 120,000 shares at P25 per share. A down payment of 40% was received from the subscribers. The balance is due in three equal installments.
8 Issued 23,000 shares in exchange for land valued at P750,000.
10 Received the first installment from the subscribers.
20 Received the second installment due from the subscribers.
30 Received the final installment from all subscribers and a share of stock was issued.
Instructions: Prepare
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