Exercise 8-5 (Issuance of Share Capital on a Subscription Basis) On June 1, 2014, Simplicity, Inc. sold 35,000 shares of its P20 par value ordinary share capital on a subscription basis at P50 per share. Símplicity received a 60% down payment on the date of subscription. On September 8, 2014, Simplicity received the balance on the subscription and the stock certificates were issued. Instructions: Prepare journal entries to record the preceding transactions.
Exercise 8-5 (Issuance of Share Capital on a Subscription Basis) On June 1, 2014, Simplicity, Inc. sold 35,000 shares of its P20 par value ordinary share capital on a subscription basis at P50 per share. Símplicity received a 60% down payment on the date of subscription. On September 8, 2014, Simplicity received the balance on the subscription and the stock certificates were issued. Instructions: Prepare journal entries to record the preceding transactions.
Chapter1: Financial Statements And Business Decisions
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![Exercise 8-5 (Issuance of Share Capital on a Subscription Basis)
On June 1, 2014, Simplicity, Inc. sold 35,000 shares of its P20 par value ordinary share
capital on a subscription basis at P50 per share. Símplicity received a 60% down payment
on the date of subscription. On September 8, 2014, Simplicity received the balance on the
subscription and the stock certificates were issued.
Instructions: Prepare journal entries to record the preceding transactions.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F35345e53-801a-4522-9422-da6366c4897e%2Fac42af10-abf2-405d-82bd-ea2cfa7ddac3%2Fvnpjxlb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 8-5 (Issuance of Share Capital on a Subscription Basis)
On June 1, 2014, Simplicity, Inc. sold 35,000 shares of its P20 par value ordinary share
capital on a subscription basis at P50 per share. Símplicity received a 60% down payment
on the date of subscription. On September 8, 2014, Simplicity received the balance on the
subscription and the stock certificates were issued.
Instructions: Prepare journal entries to record the preceding transactions.
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