Oct. 1 Five incorporators subscribed to 180,000 common shares at par as follows Incorporator's Name Antonio Lim Down Payment P400,000 400,000 350,000 600,000 400,000 No. of Shares 30,000 40,000 30,000 50,000 30,000 Andres Castillo Jim Buenaventura Jaime Singson Tony Espiritu The lawyer billed the corporation P150,000 for assisting in the incorporation process and was given the corresponding shares. Nov. 5 10 Sold 10,000 shares to various shareholders at 120% of its par value. The incorporators paid half of their subscription balance. 20 Dec. 1 Accepted subscriptions from Rubio, Perez, Santos, Sammy and Ong who subscribed to 24,000 shares each at P55 per share. Each subscriber gave a 25% down payment. Issued to A Zobel 55,000 ordinary shares in exchange for land at Redwoods with a market value of P3,000,000. 28 26 Three of the incorporators, Singson, Espiritu and Lini, paid the balance of their subscriptions and were issued the corresponding stock certificates. Direction: a) Prepare the journal entries to record the stock transactions using the memorandum entry method. b) Prepare the corporation's shareholders' equity as of December 31. c) How much is legal capital?

Oct. 1 Five incorporators subscribed to 180,000 common shares at par as follows Incorporator's Name Antonio Lim Down Payment P400,000 400,000 350,000 600,000 400,000 No. of Shares 30,000 40,000 30,000 50,000 30,000 Andres Castillo Jim Buenaventura Jaime Singson Tony Espiritu The lawyer billed the corporation P150,000 for assisting in the incorporation process and was given the corresponding shares. Nov. 5 10 Sold 10,000 shares to various shareholders at 120% of its par value. The incorporators paid half of their subscription balance. 20 Dec. 1 Accepted subscriptions from Rubio, Perez, Santos, Sammy and Ong who subscribed to 24,000 shares each at P55 per share. Each subscriber gave a 25% down payment. Issued to A Zobel 55,000 ordinary shares in exchange for land at Redwoods with a market value of P3,000,000. 28 26 Three of the incorporators, Singson, Espiritu and Lini, paid the balance of their subscriptions and were issued the corresponding stock certificates. Direction: a) Prepare the journal entries to record the stock transactions using the memorandum entry method. b) Prepare the corporation's shareholders' equity as of December 31. c) How much is legal capital?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Problem 1: The Justice Corporation is authorized to issue 500,000 shares of ordinary share capital with a stated value of P20. The following transactions have taken place in relation to the share capital: a. Issued 125,000 shares for cash at stated value. b. Issued 2,500 shares to attorneys for services in securing corporate charter and for preliminary legal costs of organizing the corporation. The value of the services was P150,000. c. Issued 2,000 shares to the corporate promoters. Each ordinary share is selling at P25 on this date. d. Issued 10,000 shares in exchange for land valued at P300,000. e. Issued for cash 50,000 shares at P24 per share. Instructions: Prepare the journal entries to record the preceding transactions, including authorized capital, using the memorandum entry method.
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
1. Journal entries for each of the transaction
On the date of incorporation, the condensed balance sheet of Alom Partnership showed the following: Cash P 28,000Other Assets 256,000Liabilities 50,000Alpha Capital 180,000Omega Capital 54,000 The Securities and Exchange Commission authorized the corporation to issue the following shares: o 10,000 shares of 12% Preference Share Capital, par P 100; ando 20,000 shares of Ordinary Share Capital, par P 50. The corporation issued 1,500 preference shares and 800 ordinary shares to Alpha in exchange for her equity in the partnership. On the other hand, Omega received 1,500 preference shares and 1,200 ordinary shares for her equity in the partnership. Any capital deficiency of the partners will be paid in cash. Three other incorporators each subscribed at par, 1,500 preference shares and 2,000 ordinary shares paying only 25% of their subscriptions and the balance payable in two months from the date of subscription.…
PLease answer only B3, B4, B5
On the date of incorporation, the condensed balance sheet of Alom Partnership showed the following: Cash P 28,000Other Assets 256,000Liabilities 50,000Alpha Capital 180,000Omega Capital 54,000 The Securities and Exchange Commission authorized the corporation to issue the following shares: o 10,000 shares of 12% Preference Share Capital, par P 100; ando 20,000 shares of Ordinary Share Capital, par P 50. The corporation issued 1,500 preference shares and 800 ordinary shares to Alpha in exchange for her equity in the partnership. On the other hand, Omega received 1,500 preference shares and 1,200 ordinary shares for her equity in the partnership. Any capital deficiency of the partners will be paid in cash. Three other incorporators each subscribed at par, 1,500 preference shares and 2,000 ordinary shares paying only 25% of their subscriptions and the balance payable in two months from the date of subscription. Refer to…
PROBLEM 1: Mr. Queen Company is authorized to issue 80,000 ordinary shares. During the current year, the company issued 25,000 shares. REQUIRED: Prepare the required entry to record the issuance of the ordinary shares under each of the following assumptions: The shares are no-par but have a stated value of P10. The total issue price was P850,000. The shares are no-par and have no stated value. They were issued to a lawyer in exchange for services rendered in connection with the organization of the corporation. The lawyer would normally charge P70,000 for these services. There is no reasonable way to determine 1. 2. the fair market value of the stock.
The following are capital stock transactions of the BBC Corporation. Apr. 1 Authorized to issue 100,000 ordinary shares at P10 par value per share. Five incorporators subscribed a total of 25,000 shares at par, and paid 25% down payment (5,000 shares each). 4Paid incorporation fees to the S.E.C. P 5,300. Issued 200 shares to a lawyer for his legal services. 6: Issued 3,000 shares of stock for cash of P33,000. 9: Received subscriptions for 2,000 shares at P11, collecting a cash down-payment of 25%. 10 : One of the incorporators give merchandise as full payment of his subscription. 15 Three incorporators paid cash for their subscription balance. 16 Another 25% paid by the subscriber on the 9th. 20 An equipment worth P30,000 plus P7,500 cash was received from the last incorporator as full payment of his subscription. 28 2,300 shares were issued, in exchange for a car worth P25,000. 30 The subscriber on the 9th paid his subscription in full. Requirement: Journalize the foregoing…
C5.1
I1. The Good Health SPA and Resort, Inc. had its articles of incorporation approved by the SEC on September 1. It authorized the corporation to issue 500,000 shares of P50 par value ordinary shares. The company completed the following stock transactions:
PLease answer only B6 and B7