EXERCISE I The Gallery Company is authorized to issue 100, 000 shares of P 500 par value ordinary share capital. Gallery has the following transactions during the month: Issued 20,000 shares at par, receiving cash. • Received a bill amounting to P 180,000 for services in securing the corporate charter and for other preliminary legal costs of organizing the corporation. The bill was settled by issuing 300 shares of ordinary share capital. Issued 12,500 ordinary shares in exchange for land and building with fair values of P 5,000,000 and 3,000,000, respectively. • Received cash for 6,500 ordinary shares sold at P 550 per share. Received subscription for 20,000 shares at p 550 per share, receiving 25% down. • Collected balance of the subscription price on the 12,000 shares subscribed above and share certificates were accordingly issued. REQUIRED: a) Journal entries to record the foregoing transactions.
EXERCISE I The Gallery Company is authorized to issue 100, 000 shares of P 500 par value ordinary share capital. Gallery has the following transactions during the month: Issued 20,000 shares at par, receiving cash. • Received a bill amounting to P 180,000 for services in securing the corporate charter and for other preliminary legal costs of organizing the corporation. The bill was settled by issuing 300 shares of ordinary share capital. Issued 12,500 ordinary shares in exchange for land and building with fair values of P 5,000,000 and 3,000,000, respectively. • Received cash for 6,500 ordinary shares sold at P 550 per share. Received subscription for 20,000 shares at p 550 per share, receiving 25% down. • Collected balance of the subscription price on the 12,000 shares subscribed above and share certificates were accordingly issued. REQUIRED: a) Journal entries to record the foregoing transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:EXERCISE I
The Gallery Company is authorized to issue 100, 000 shares of P 500 par value ordinary share capital. Gallery
has the following transactions during the month:
Issued 20,000 shares at par, receiving cash.
Received a bill amounting to P 180,000 for services in securing the corporate charter and for other
preliminary legal costs of organizing the corporation. The bill was settled by issuing 300 shares of ordinary
share capital.
Issued 12,500 ordinary shares in exchange for land and building with fair values of P 5,000,000 and 3,000,000,
respectively.
• Received cash for 6,500 ordinary shares sold at P 550 per share.
• Received subscription for 20,000 shares at p 550 per share, receiving 25% down.
Collected balance of the subscription price on the 12,000 shares subscribed above and share certificates were
accordingly issued.
REQUIRED:
a) Journal entries to record the foregoing transactions.
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