Problem #6 Issuance of Ordinary and Preference Shares Calamba Corporation was organized on April 8, 2018. The corporation was authorized to issue 9,000 shares of 9% cumulative preference shares, P100 par value, and 90,000 shares of ordinary shares, P35 par value. Record in a general journal the following transactions completed during the firm's first year of operations: Apr. 8 Sold 32,000 shares of ordinary shares at par for cash. 8 Issued 900 shares of ordinary shares to a lawyer in exchange for legal services pertaining to incorporation. The stock is selling at par. May 7 Sold 5,000 shares of preferred stock at P109; received cash. Aug. 12 Issued 30,000 shares of ordinary shares in exchange for land with a fair market value of P1,050,000.
Problem #6 Issuance of Ordinary and Preference Shares Calamba Corporation was organized on April 8, 2018. The corporation was authorized to issue 9,000 shares of 9% cumulative preference shares, P100 par value, and 90,000 shares of ordinary shares, P35 par value. Record in a general journal the following transactions completed during the firm's first year of operations: Apr. 8 Sold 32,000 shares of ordinary shares at par for cash. 8 Issued 900 shares of ordinary shares to a lawyer in exchange for legal services pertaining to incorporation. The stock is selling at par. May 7 Sold 5,000 shares of preferred stock at P109; received cash. Aug. 12 Issued 30,000 shares of ordinary shares in exchange for land with a fair market value of P1,050,000.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Problem #6
Issuance of Ordinary and Preference Shares
Calamba Corporation was organized on April 8, 2018. The corporation was authorized
to issue 9,000 shares of 9% cumulative preference shares, P100 par value, and 90,000
shares of ordinary shares, P35 par value. Record in a general journal the following
transactions completed during the firm's first year of operations:
Apr.
8 Sold 32,000 shares of ordinary shares at par for cash.
8 Issued 900 shares of ordinary shares to a lawyer in exchange for
legal services pertaining to incorporation. The stock is selling at
par.
May
7 Sold 5,000 shares of preferred stock at P109; received cash.
12 Issued 30,000 shares of ordinary shares in exchange for land with a
fair market value of P1,050,000.
Aug.
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