ONE PUNCH CO. is authorized to issue 300,000 of P 20 par value ordinary shares, and 60,000 of preference shares of P 100 par value per share. The company engaged in the following share capital transactions through the year 2021: I) 60,000 ordinary shares were issued at P 85 per share to Badang; received cash and 20,000 preference share for machinery which has a fair market value of P 2,600,000 to Aldous. ii.) Issued 750 ordinary shares, selling at P 50 per share, to Atty. Paquito for services in connection with the organization of the corporation. The fair value of the legal services was P 18, 750. iii.) Masha subscribed 1,500 preference shares at par value and paid downpayment of P 37, 500. iv.) Received building and land from Chou for 80, 800 ordinary shares. The building was originally acquired by the investor for P 2,000,000 and has accumulated depreciation of P 300,000. It is currently valued in the market at P 2, 250,000. The land was originally acquired for 120,000 but is currently valued in the market at P 369,000. v.) Yin subscribed 55,000 ordinary shares at 143 per share and paid 90% of the subscription. vi.) Masha paid 75% of her remaining balance of subscribed preference shares. Prepare the journal entry using “memoramdum entry method”

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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ONE PUNCH CO. is authorized to issue 300,000 of P 20 par value ordinary shares, and 60,000 of preference shares of P 100 par value per share. The company engaged in the following share capital transactions through the year 2021: I) 60,000 ordinary shares were issued at P 85 per share to Badang; received cash and 20,000 preference share for machinery which has a fair market value of P 2,600,000 to Aldous. ii.) Issued 750 ordinary shares, selling at P 50 per share, to Atty. Paquito for services in connection with the organization of the corporation. The fair value of the legal services was P 18, 750. iii.) Masha subscribed 1,500 preference shares at par value and paid downpayment of P 37, 500. iv.) Received building and land from Chou for 80, 800 ordinary shares. The building was originally acquired by the investor for P 2,000,000 and has accumulated depreciation of P 300,000. It is currently valued in the market at P 2, 250,000. The land was originally acquired for 120,000 but is currently valued in the market at P 369,000. v.) Yin subscribed 55,000 ordinary shares at 143 per share and paid 90% of the subscription. vi.) Masha paid 75% of her remaining balance of subscribed preference shares. Prepare the journal entry using “memoramdum entry method”

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