Villarama Corporationwas organized on Jan. 1, 2018. It is authorized to issue 20,000 shares of6%, P50 par value preferenceshares, and 50,000 shares of no-par ordinary shares with a statedvalue of P10 pershare. The following stocktransactionswere completedduring the year:Issued 10,000 ordinary shares for cashat P35 pershare.Issued 10,000 preference shares for cashat P55 pershare.Jan. 10Mar. 1Apr. 1Issued 2,500 ordinaryshares for land. The asking price of the land wasP90,000; the fair market value of the land was P85,000.May 1Issued 7,500 ordinaryshares for cashat P40 pershare.Aug. 1Issued 1,000 ordinaryshares to lawyers in payment of their bill forP50,000 pertaining to services rendered in helping the corporationorganize.Sep. 1Issued 500 ordinary shares forcash at P60 per share.Issued 2,000 preference shares forcash at P53 pershare.Nov. 1Required:1. Journalize the transactions.2. Postto the shareholders' equityaccounts.3. Preparethe sharecapital section of the shareholders' equity as at Dec. 31, 2018.Assume Retained Earnings has a balance of P200,000.

1) Journal Entries Date Particulars Debit Credit Jan. 10 Cash (10000*35) 350000 Common…

illarama Corporation was organizedon Jan. 1, 2018. It is authorized to iss %, P50 par value preferenceshares, and 50,000shares of no-par ordinary alue of P10 pershare. The following stocktransactionswerecompletedd Jan. 10 Issued 10,000 ordinary shares for cashat P35 persh Mar. 1 Issued 10,000 preference shares for cashat P55 per Apr. 1 Issued 2,500 ordinaryshares for land. The asking pri P90,000; the fair market value of the landwas P85,0 May 1 Issued 7,500 ordinaryshares for cashat P40 persha Aug. 1 Issued 1,000 ordinaryshares to lawyers in payment P50,000 pertaining to services rendered in helping th organize. Sep. 1 Issued 500 ordinary shares for cash at P60 per share Nov. 1 Issued 2,000 preference shares for cash at P53 pers cequired: 1. Journalize the transactions. 2. Post to the shareholders' equityaccounts. 3. Preparethe sharecapital section of the shareholders' equity as at D

illarama Corporation was organizedon Jan. 1, 2018. It is authorized to iss %, P50 par value preferenceshares, and 50,000shares of no-par ordinary alue of P10 pershare. The following stocktransactionswerecompletedd Jan. 10 Issued 10,000 ordinary shares for cashat P35 persh Mar. 1 Issued 10,000 preference shares for cashat P55 per Apr. 1 Issued 2,500 ordinaryshares for land. The asking pri P90,000; the fair market value of the landwas P85,0 May 1 Issued 7,500 ordinaryshares for cashat P40 persha Aug. 1 Issued 1,000 ordinaryshares to lawyers in payment P50,000 pertaining to services rendered in helping th organize. Sep. 1 Issued 500 ordinary shares for cash at P60 per share Nov. 1 Issued 2,000 preference shares for cash at P53 pers cequired: 1. Journalize the transactions. 2. Post to the shareholders' equityaccounts. 3. Preparethe sharecapital section of the shareholders' equity as at D

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Villarama Corporationwas organized on Jan. 1, 2018. It is authorized to issue 20,000 shares of
6%, P50 par value preferenceshares, and 50,000 shares of no-par ordinary shares with a stated
value of P10 pershare. The following stocktransactionswere completedduring the year:
Issued 10,000 ordinary shares for cashat P35 pershare.
Issued 10,000 preference shares for cashat P55 pershare.
Jan. 10
Mar. 1
Apr. 1
Issued 2,500 ordinaryshares for land. The asking price of the land was
P90,000; the fair market value of the land was P85,000.
May 1
Issued 7,500 ordinaryshares for cashat P40 pershare.
Aug. 1
Issued 1,000 ordinaryshares to lawyers in payment of their bill for
P50,000 pertaining to services rendered in helping the corporation
organize.
Sep. 1
Issued 500 ordinary shares forcash at P60 per share.
Issued 2,000 preference shares forcash at P53 pershare.
Nov. 1
Required:
1. Journalize the transactions.
2. Postto the shareholders' equityaccounts.
3. Preparethe sharecapital section of the shareholders' equity as at Dec. 31, 2018.
Assume Retained Earnings has a balance of P200,000.

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