The following are independent transactions relating to share capital: Issued 10,000 ordinary shares of P 150 par value at P 200 per share.The company incurred and paid documentary stamp tax and other SEC registration fees for new shares P 60,000 and public relations consultants' fees of P 25,000. • Issued 3,500 ordinary shares of P 200 par in exchange for a parcel of land to be used as a plant site. The ordinary share capital is actively traded on the Philippine Stock Exchange at an average price of P 560 per share. • Issued 100, 000, P 100 par ordinary shares for P 18,000,000. One share of P 500 par preference was issued with every 20 ordinary shares.The market price per ordinary share was P 120 and per preference share was P 800. • Subscriptions to 5,000 ordinary shares with P 100 par value are received from various subscribers along with checks amounting to 25% of the subscription price as down payment.The share capital was subscribed at P 120 The balance of the subscription price is to be paid in 3 equal monthly installments. per share. Received a parcel of land from a wealthy shareholder to be used for the construction of a new factory building. Legal fees of P 40,000 were paid. The fair market value of the land was P 5,000,000. Its cost to the shareholder was P 800,000 ten years ago. REQUIRED: a) Journal entries to record the foregoing transactions.
The following are independent transactions relating to share capital: Issued 10,000 ordinary shares of P 150 par value at P 200 per share.The company incurred and paid documentary stamp tax and other SEC registration fees for new shares P 60,000 and public relations consultants' fees of P 25,000. • Issued 3,500 ordinary shares of P 200 par in exchange for a parcel of land to be used as a plant site. The ordinary share capital is actively traded on the Philippine Stock Exchange at an average price of P 560 per share. • Issued 100, 000, P 100 par ordinary shares for P 18,000,000. One share of P 500 par preference was issued with every 20 ordinary shares.The market price per ordinary share was P 120 and per preference share was P 800. • Subscriptions to 5,000 ordinary shares with P 100 par value are received from various subscribers along with checks amounting to 25% of the subscription price as down payment.The share capital was subscribed at P 120 The balance of the subscription price is to be paid in 3 equal monthly installments. per share. Received a parcel of land from a wealthy shareholder to be used for the construction of a new factory building. Legal fees of P 40,000 were paid. The fair market value of the land was P 5,000,000. Its cost to the shareholder was P 800,000 ten years ago. REQUIRED: a) Journal entries to record the foregoing transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:EXERCISE 2
The following are independent transactions relating to share capital:
Issued 10,000 ordinary shares of P 150 par value at P 200 per share.The company incurred and paid documentary
stamp tax and other SEC registration fees for new shares P 60,000 and public relations consultants' fees of P 25,000.
Issued 3,500 ordinary shares of P 200 par in exchange for a parcel of land to be used as a plant site. The ordinary
share capital is actively traded on the Philippine Stock Exchange at an average price of P 560
per
share.
Issued 100, 000, P 100 par ordinary shares for P 18,000,000. One share of P 500 par preference was issued with
every 20 ordinary shares. The market price per ordinary share was P 120 and per preference share was P 800.
Subscriptions to 5,000 ordinary shares with P 1 00 par value are received from various subscribers along with checks
amounting to 25% of the subscription price as down payment. The share capital was subscribed at P 120
The balance of the subscription price is to be paid in 3 equal monthly installments.
per
share.
Received a parcel of land from a wealthy shareholder to be used for the construction of a new factory building. Legal
fees of P 40,000 were paid. The fair market value of the land was P 5,000,000. Its cost to the shareholder was P
800,000 ten years ago.
REQUIRED:
a) Journal entries to record the foregoing transactions.
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