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Prepare journal entries to reooed the transactions using the mora Bum method and presen the shareholders' equity

Prepare journal entries to reooed the transactions using the mora Bum method and presen the shareholders' equity

FINANCIAL ACCOUNTING
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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Problem 20-1

Problem 20-1 At the beginning of current year, Ocean Company w orenied and auiborined to ieaue share capital of l00,0 ahares of P50 par value. 1 The incorporators subacribed for 25% of the authoriaed share capital at par value 2 The incorporators paid 25% on their eubacription a Pall payment was received on 15.000 ahares originelly subscribed. 4 Land with fair value of P600,000 was acquired upon iuance of 10,000 shares. The market value of the ahare at this time was P5S. & Cash subscription to 5,000 ahares at P60 per share wa received. Issued 2000 aharen to the legal couneel in payment for his PI00,000 bill for organiaation services. Required: Prepare journal entries to record the transactiona uaing the memorandum mathod and present the shareholders' equity
Transcribed Image Text:Problem 20-1 At the beginning of current year, Ocean Company w orenied and auiborined to ieaue share capital of l00,0 ahares of P50 par value. 1 The incorporators subacribed for 25% of the authoriaed share capital at par value 2 The incorporators paid 25% on their eubacription a Pall payment was received on 15.000 ahares originelly subscribed. 4 Land with fair value of P600,000 was acquired upon iuance of 10,000 shares. The market value of the ahare at this time was P5S. & Cash subscription to 5,000 ahares at P60 per share wa received. Issued 2000 aharen to the legal couneel in payment for his PI00,000 bill for organiaation services. Required: Prepare journal entries to record the transactiona uaing the memorandum mathod and present the shareholders' equity
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