Problem 6-1 (Subscription of Shares) Faith Inc. has been authorized to issue 125,000 shares of P10 par ordinary shares. transactions relate to the initial issuance of Faith share: Faith Inc. sold subscriptions for 25,000 shares of stock. The shares hav price of P15 per share. One-third of the subscription price was received payment. 15 Faith Inc. sold 10,000 shares for P180,000 Mar 1 An installment amounting to one-third of the subscription price was ree 19 Faith Inc. exchanged 200 shares of stock for a new two-way radio syste market value of P3,800 Apr 1 The final one-third of the subscription price was received and the share
Problem 6-1 (Subscription of Shares) Faith Inc. has been authorized to issue 125,000 shares of P10 par ordinary shares. transactions relate to the initial issuance of Faith share: Faith Inc. sold subscriptions for 25,000 shares of stock. The shares hav price of P15 per share. One-third of the subscription price was received payment. 15 Faith Inc. sold 10,000 shares for P180,000 Mar 1 An installment amounting to one-third of the subscription price was ree 19 Faith Inc. exchanged 200 shares of stock for a new two-way radio syste market value of P3,800 Apr 1 The final one-third of the subscription price was received and the share
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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SUBSCRIPTION OF SHARES
Transcribed Image Text:Problem 6-1 (Subscription of Shares)
Faith Inc. has been authorized to issue 125,000 shares of P10 par ordinary shares. The following 2021
transactions relate to the initial issuance of Faith share:
Feb 1 Faith Inc. sold subscriptions for 25,000 shares of stock. The shares have a subscription
price of P15 per share. One-third of the subscription price was reccived as a down
payment.
15 Faith Inc. sold 10,000 shares for P180,000
Mar 1 An installment amounting to one-third of the subscription price was received
19 Faith Inc. exchanged 200 shares of stock for a new two-way radio system having a fair
market value of P3,800
Apr 1 The final one-third of the subscription price was received and the share was issued.
Required:
Prepare journal entries to record the transactions.
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