Subscription of Shares Gabayan, Inc. has been authorized to issue 125,000 shares of P10 par ordinary shares The following 2019 transactions relate to the initial issuance of Gabayan share: Feb. 1 Gabayan 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 received as a down payment. 15 Gabayan sold 10,000 shares for P180,000. Mar. 1 An installment amounting to one-third of the subscription price was received. 19 Gabayan 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 issued. Required: Prepare journal entries to record the transactions.
Subscription of Shares Gabayan, Inc. has been authorized to issue 125,000 shares of P10 par ordinary shares The following 2019 transactions relate to the initial issuance of Gabayan share: Feb. 1 Gabayan 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 received as a down payment. 15 Gabayan sold 10,000 shares for P180,000. Mar. 1 An installment amounting to one-third of the subscription price was received. 19 Gabayan 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 issued. Required: Prepare journal entries to record the transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Answer in a memorandum entry
Transcribed Image Text:Subscription of Shares
Gabayan, Inc. has been authorized to issue 125,000 shares of P10 par ordinary shares
The following 2019 transactions relate to the initial issuance of Gabayan share:
Feb. 1 Gabayan 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 received as a down payment.
15 Gabayan sold 10,000 shares for P180,000.
Mar. 1 An installment amounting to one-third of the subscription price
was received.
19 Gabayan 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 issued.
Required:
Prepare journal entries to record the transactions.
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