Give the journal entries of the following:Noelle Company began operations on January 1. Authorized were 120,000 shares of P10 par value ordinary shares and 240,000 shares of 10%, P100 par value preference shares.Issued 30,000 ordinary shares to the corporation promoters in exchange for land valued at P1,020,000 and services valued at P420,000. The property had cost the promoters P540,000 three (3) years before and was carried on the promoters’ books at P300,000.Issued 60,000 preference shares with a par value of P100 per share. The shares were issued at a price of P150 per share, and the company paid P450,000 to an agent for selling the shares.

Preference share are issued by a company to raise fund. These shares carry the following two…

Answered: Give the journal entries of the…

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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Give the journal entries of the following:

Noelle Company began operations on January 1. Authorized were 120,000 shares of P10 par value ordinary shares and 240,000 shares of 10%, P100 par value preference shares.
Issued 30,000 ordinary shares to the corporation promoters in exchange for land valued at P1,020,000 and services valued at P420,000. The property had cost the promoters P540,000 three (3) years before and was carried on the promoters’ books at P300,000.
Issued 60,000 preference shares with a par value of P100 per share. The shares were issued at a price of P150 per share, and the company paid P450,000 to an agent for selling the shares.

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