SUBSCRIPTION OF SHARES Problem 6-1 (Subscription of Shares)Faith Inc. has been authorized to issue 125,000 shares of P10 par ordinary shares. The following 2021transactions relate to the initial issuance of Faith share:Feb 1 Faith Inc. sold subscriptions for 25,000 shares of stock. The shares have a subscriptionprice of P15 per share. One-third of the subscription price was reccived as a downpayment.15 Faith Inc. sold 10,000 shares for P180,000Mar 1 An installment amounting to one-third of the subscription price was received19 Faith Inc. exchanged 200 shares of stock for a new two-way radio system having a fairmarket value of P3,800Apr 1 The final one-third of the subscription price was received and the share was issued.Required:Prepare journal entries to record the transactions.

A journal entry is used to record a commercial transaction in the accounting records of a…

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

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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Similar questions

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