Prepare the journal entries to record each of the following transactions under the memorandum entry method and present the shareholders' equity section: Feb. 1 Best Securities Corporation was granted by the SEC to issue 1,000,000 shares of stocks at a par value of P10 after it submitted its Articles of Incorporation providing among others a required down payment of at least 30% with the balance to be paid within three months. The articles mentioned four incorporators who subscribed 75,000 shares each at par. A and B gave a down payment of 20% while C and D ga
Direction: a. Prepare the entries using the memorandum entry method. b. Give the total number of shares issued, paid in capital at par, additional paid in capital.
5. Prepare the journal entries to record each of the following transactions under the memorandum entry method and present the shareholders' equity section: Feb. 1 Best Securities Corporation was granted by the SEC to issue 1,000,000 shares of stocks at a par value of P10 after it submitted its Articles of Incorporation providing among others a required down payment of at least 30% with the balance to be paid within three months. The articles mentioned four incorporators who subscribed 75,000 shares each at par. A and B gave a down payment of 20% while C and D gave 50%. 14 Best Securities Corporation sold for cash 160,000 ordinary shares at P12 per share to various shareholders. Mar. 14 Gonzalo Enterprises received 320,000 ordinary shares from Best Securities Corporation in exchange for land with a cost of P1, 750,000 but with an appraised value which was twice the cost. Apr. 28 Isko Pangilinan, a lawyer, received 4,500 common shares from Best Securities for legal services rendered amounting to P50,000. 30 The balance of the subscription of A and B were collected.
6. Refer to No. 5, answer the same requirements but use the
7. The following accounts were picked up from the general ledger of Forever Corporation after its first month of incorporation: Debit Credit Cash P 700,000 Subscription Receivable 240,000 P 160,000 Subscribed Share Capital 150,000 200,000 Share Capital Share Premium 650,000 Total 80,000 P1,090,000 P1,090,000 Direction: Reconstruct the entries made for the following: a) Subscription at a premium of P40,000. b) Collection of subscription. c) Issuance of stock certificate for subscribed shares fully paid. d) Cash received for additional shares sold at a premium.
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