PROBLEM 2: On February 14,2019, Hogwarts Marketing Inc. was authorized to issue 2,000ordinary shares with a par value of P1,000 share. The next day, the corporation received 600shares subscriptions from six incorporators as well as 25% paid-up capital. On March 1,2019, theremaining balance was paid in full and share certificates were issued to them. The precedingtransactions were properly recorded in the books of the corporation. During the month of March,the foregoing transactions occurred: March 5Received subscription of 300 shares from Hermione Granger at P1,200 fair marketvalue per share and collected 20% of her subscription.July 28After all lawful calls and notices, Ms. Granger defaulted and all her subscribedshares were declared delinquent and were advertised for public auction.July 30Advertising expense was paid by the corporation amounted to P5,000.Aug. 01At the public auction, the following individuals' bids and the highest bidder paysthe balance of the subscription plus advertising cost.BiddersNo. of shares willing to receiveDraco Malfoy200James Potter250Lord Voldemort280Aug. 02The share certificate were issued.Required:1. Journal entries in the book of the corporation. Use Memorandum Entry method.2. Who will receive the share certificate and how many shares were issued to them? Showyour solution.

Subscription of Shares Subscription of shares which was incurred at the time of shares were…

July 30 Advertising expense was paid by the corporation amounted to P5,000. Aug. 01 At the public auction, the following individuals' bids and the highest bidder pays the balance of the subscription plus advertising cost. Bidders No. of shares willing to receive Draco Malfoy 200 James Potter 250 Lord Voldemort 280 Aug. 02 The share certificate were issued. Required: 1. Journal entries in the book of the corporation. Use Memorandum Entry method. 2. Who will receive the share certificate and how many shares were issued to them? Show your solution.

July 30 Advertising expense was paid by the corporation amounted to P5,000. Aug. 01 At the public auction, the following individuals' bids and the highest bidder pays the balance of the subscription plus advertising cost. Bidders No. of shares willing to receive Draco Malfoy 200 James Potter 250 Lord Voldemort 280 Aug. 02 The share certificate were issued. Required: 1. Journal entries in the book of the corporation. Use Memorandum Entry method. 2. Who will receive the share certificate and how many shares were issued to them? Show your solution.

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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