Homework Help is Here – Start Your Trial Now!
Business
Accounting
Instructions: Prepare journal entries to record authorized share capital and the subseque transactions assuming the corporation uses the: a. memorandum entry method b. journal entry method

Instructions: Prepare journal entries to record authorized share capital and the subseque transactions assuming the corporation uses the: a. memorandum entry method b. journal entry method

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Exercise 8 -2 (Issuance of Par Value Share Capital for Cash, Services, and Non-cod Assets) The Honesty Corporation was organized on April 1, 2014 with authorized share capital 500,000 ordinary shares, par value of P20. Thereafter, the following transactions tod place: April 1 The incorporators acquired 200,000 shares at P36 per share. 25 Issued 5,000 shares for the services rendered by the lawyer during the perid of incorporation. The fair value of such services is P150,000. In al Мay 28 Issued 15,000 shares in exchange for equipment valued at P400,000. Instructions: Prepare journal entries to record authorized share capital and the subsequet transactions assuming the corporation uses the: a. memorandum entry method b. journal entry method
Transcribed Image Text:Exercise 8 -2 (Issuance of Par Value Share Capital for Cash, Services, and Non-cod Assets) The Honesty Corporation was organized on April 1, 2014 with authorized share capital 500,000 ordinary shares, par value of P20. Thereafter, the following transactions tod place: April 1 The incorporators acquired 200,000 shares at P36 per share. 25 Issued 5,000 shares for the services rendered by the lawyer during the perid of incorporation. The fair value of such services is P150,000. In al Мay 28 Issued 15,000 shares in exchange for equipment valued at P400,000. Instructions: Prepare journal entries to record authorized share capital and the subsequet transactions assuming the corporation uses the: a. memorandum entry method b. journal entry method
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS