Jan. 1 Issued for cash 62,500 preference shares at par, and 125,000 ordinary shares f 250,000 shares of P100 par value 10% preference share capital and 500,000 shares of a The Integrity Corporation was incorporated on January 1, 2014 with authorized capital Exercise 8 - 1 (Issuance of Par Value S stated value ordinary share capital. The shares were issued during 2014 as follows P25. May 1 Issued for cash 25,000 preference shares for P3,000,000. Dec. 1 Issued for cash 25,000 ordinary shares for P600,000. Instructions: Prepare the journal entries to record the foregoing transactions, includine authorized share capital, assuming the use of: a. memorandum entry method. b. journal entry method

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
1 Issued for cash 62,500 preference shares at par, and 125,000 ordinary shares f
The Integrity Corporation was incorporated on January 1, 2014 with authorized capital
250,000 shares of P100 par value 10% preference share capital and 500,000 shares of P
Chapter 8- Organization and Formation of a
Corporation
314
Chapter 8
EXERCISES
Exercise
Exercise 8 -1 (Issuance of Par Value Share Capital for Cash)
The Sec
shares c
share.
stated value ordinary share capital. The shares were issued during 2014 as follows
Instruc
of the
Jan.
indeper
P25.
May 1 Issued for cash 25,000 preference shares for P3,000,000.
1.
2.
3.
Dec. 1 Issued for cash 25,000 ordinary shares for P600,000.
Exerci
Consic
Instructions: Prepare the journal entries to record the foregoing transactions, including
authorized share capital, assuming the use of:
a. memorandum entry method.
b. journal entry method
The Ju
a state
capita.
Transcribed Image Text:1 Issued for cash 62,500 preference shares at par, and 125,000 ordinary shares f The Integrity Corporation was incorporated on January 1, 2014 with authorized capital 250,000 shares of P100 par value 10% preference share capital and 500,000 shares of P Chapter 8- Organization and Formation of a Corporation 314 Chapter 8 EXERCISES Exercise Exercise 8 -1 (Issuance of Par Value Share Capital for Cash) The Sec shares c share. stated value ordinary share capital. The shares were issued during 2014 as follows Instruc of the Jan. indeper P25. May 1 Issued for cash 25,000 preference shares for P3,000,000. 1. 2. 3. Dec. 1 Issued for cash 25,000 ordinary shares for P600,000. Exerci Consic Instructions: Prepare the journal entries to record the foregoing transactions, including authorized share capital, assuming the use of: a. memorandum entry method. b. journal entry method The Ju a state capita.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Dividends
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
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