Problem 1:The Justice Corporation is authorized to issue 500,000 shares of ordinary share capital witha stated value of P20. The following transactions have taken place in relation to the sharecapital:a. Issued 125,000 shares for cash at stated value.b. Issued 25,000 shares to attorneys for services in securing corporate charter and forpreliminary legal costs of organizing the corporation. The value of the services wasP150,000.c. Issued 2,000 shares to the corporate promoters. Each ordinary share is selling atP25 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, includingauthorized capital, using the memorandum entry method.

Solution A journal is a book in which transactions are recorded according to double entry system i.e…

Answered: Problem 1: The Justice Corporation is…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

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Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 8EB: Juniper Company is authorized to issue 5,000,000 shares of $2 par value common stock. In conjunction...

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Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.
Vishnu Company is authorized to issue 500,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Apr. 10, issued 1,000 shares of stock for legal services valued at $15,000. Journalize the transaction.
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.
Problem1: The Ianey Corporation is authorized to issue 120,000 shares of P 220 par value ordinary share capital. Ianey has the following transactions during the month: * Issued 24,200 shares at par, receiving cash. * Issued 320 shares to attorneys for services in securing the corporate charter and for preliminary legal costs of organizing the corporation. The value of the service was P 85,500. * Issued 15,600 ordinary shares in exchange for a land and a building with fair market values of P 1,320,000 and P 2,780,000, respectively. * Received cash for 8,200 ordinary shares sold at P 310 per share. Questions: 1. What is the amount that is to be reported as Ordinary share capital in the statement of financial position? 2. What is the amount that is to be reported as Share premium - ordinary share in the statement of financial position?
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Magbarkada Corporation hire promoters to procure subscriptions for the corporation. As per Articles of Incorporation the corporation has an authorized share capital of P60,000. How much shares should be subscribed and actually paid as per SEC requirement? Amount Subscribed Amount Paid a. P 15,000 P 5,000 b. P 30,000 P 6,000 c. P 15,000 P 3,750 d. P 12,000 P 3,000
The charter of a corporation provides for the issuance of 106,898 shares of common stock. Assume that 42,395 shares were originally issued and 4,642 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared? a.$42,395 b.$106,898 c.$4,642 d.$75,506
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EXERCISE I The Gallery Company is authorized to issue 100, 000 shares of P 500 par value ordinary share capital. Gallery has the following transactions during the month: Issued 20,000 shares at par, receiving cash. Received a bill amounting to P 180,000 for services in securing the corporate charter and for other preliminary legal costs of organizing the corporation. The bill was settled by issuing 300 shares of ordinary share capital. Issued 12,500 ordinary shares in exchange for land and building with fair values of P 5,000,000 and 3,000,000, respectively. • Received cash for 6,500 ordinary shares sold at P 550 per share. • Received subscription for 20,000 shares at p 550 per share, receiving 25% down. Collected balance of the subscription price on the 12,000 shares subscribed above and share certificates were accordingly issued. REQUIRED: a) Journal entries to record the foregoing transactions.

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