Faith Corporation was organized on January 2, 2018 and is authorized to issue 25,000 shares of 10% Preference Share Capital, P 50 par and 250,000 shares of Ordinary Share Capital, P 20 stated value. The following transactions took place during January: Jan 2 Issued to incorporators 62,500 ordinary shares at P 25 per share and 6,250 preference shares at par value. 6 Issued 1,250 shares to corporate promoters. The value of preference share capital on this date is P 70 per share. 10 Received subscriptions for 85,000 ordinary shares at P 30 per share with a down payment of 60% of the subscription price. 19 Issued 25,000 ordinary shares in exchange for the following: Fair value Merchandise Inventory P 10,000 350,000 Land Building 200,000 Equipment 20,000 28 Received balance due on the Jan. 10 subscription and issued the certificates. Required: Prepare the journal entries to record above transactions.

Faith Corporation was organized on January 2, 2018 and is authorized to issue 25,000 shares of 10% Preference Share Capital, P 50 par and 250,000 shares of Ordinary Share Capital, P 20 stated value. The following transactions took place during January: Jan 2 Issued to incorporators 62,500 ordinary shares at P 25 per share and 6,250 preference shares at par value. 6 Issued 1,250 shares to corporate promoters. The value of preference share capital on this date is P 70 per share. 10 Received subscriptions for 85,000 ordinary shares at P 30 per share with a down payment of 60% of the subscription price. 19 Issued 25,000 ordinary shares in exchange for the following: Fair value Merchandise Inventory P 10,000 350,000 Land Building 200,000 Equipment 20,000 28 Received balance due on the Jan. 10 subscription and issued the certificates. Required: Prepare the journal entries to record above transactions.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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