The Harry Corp. was organized on July 1, 2019, and is authorized to issue share capital as follows: 50,000 shares of 10%preference share capital, P100 par 500,000 shares of ordinary share capital, P10 stated value The following transactions took place during July: July 1 Issued to incorporators 120,000 ordinary shares at P12 per share and 12,300 preference shares at par value. 8 Issued 1,200 preference shares to corporate promoters. The value of preference share capital on this date is P120 per share. 12 Received subscription for 70,000 ordinary shares at P15 per share with a down payment of 60% of the total subscription price. 21 Issued 19,000 ordinary shares in exchange for the following: Fair Value Merchandise Inventory P12,000 Land 150,000 Building 110,000 Equipment 21,000 30 Receive the balance due on the subscription on July 12 and shares were issued to subscribers. Instructions: Prepare journal entries to record the preceding transactions.
Exercise 3 – 6 (Issuance of Share Capital on a Subscription Basis)
The Harry Corp. was organized on July 1, 2019, and is authorized to issue share capital as follows:
- 50,000 shares of 10%
preference share capital, P100 par - 500,000 shares of ordinary share capital, P10 stated value
The following transactions took place during July:
July 1 Issued to incorporators 120,000 ordinary shares at P12 per share and 12,300 preference shares at par value.
8 Issued 1,200 preference shares to corporate promoters. The value of preference share capital on this date is P120 per share.
12 Received subscription for 70,000 ordinary shares at P15 per share with a down payment of 60% of the total subscription price.
21 Issued 19,000 ordinary shares in exchange for the following:
|
|
Fair Value |
|
Merchandise Inventory |
P12,000 |
|
Land |
150,000 |
|
Building |
110,000 |
|
Equipment |
21,000 |
30 Receive the balance due on the subscription on July 12 and shares were issued to subscribers.
Instructions: Prepare
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