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Good Harvest Corp. was incorporated on Jan. 1, 2021, with authorized share capital of 300,000 shares at P20 par value.

Good Harvest Corp. was incorporated on Jan. 1, 2021, with authorized share capital of 300,000 shares at P20 par value.

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 17E: Reporting paid-in capital The following accounts and their balances were selected from the...
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1. Record the transactions completed during the months of January and February using a. Memorandum method
b. Journal entry method
2. Prepare the Contributed Capital Section of the Shareholders’ equity using a. Memorandum Method
b. Journal Entry Method

Good Harvest Corp. was incorporated on Jan. 1, 2021, with authorized share capital of 300,000 shares at P20 par value. 1. Record the transactions completed during the months of January and February using a. Memorandum method b. Journal entry method 2. Prepare the Contributed Capital Section of the Shareholders' equity using a. Memorandum Method b. Journal Entry Method a. The incorporators subscribed 25% of the authorized share capital and paid 25% of the subscription price. b. Good Harvest issued 10,000 shares for cash at P22 per share. c. The corporation received subscription for 5,000 shares at P24 per share. Thirty (30) percent of the subscription was collected and the balance is due on March 31, 2021. d. The incorporators in (a) paid the balance due on their subscriptions and the shares certificates were accordingly issued.
Transcribed Image Text:Good Harvest Corp. was incorporated on Jan. 1, 2021, with authorized share capital of 300,000 shares at P20 par value. 1. Record the transactions completed during the months of January and February using a. Memorandum method b. Journal entry method 2. Prepare the Contributed Capital Section of the Shareholders' equity using a. Memorandum Method b. Journal Entry Method a. The incorporators subscribed 25% of the authorized share capital and paid 25% of the subscription price. b. Good Harvest issued 10,000 shares for cash at P22 per share. c. The corporation received subscription for 5,000 shares at P24 per share. Thirty (30) percent of the subscription was collected and the balance is due on March 31, 2021. d. The incorporators in (a) paid the balance due on their subscriptions and the shares certificates were accordingly issued.
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