The League Corporation is authorized to issue 100,000 shares of Ordinary Share Capital with a par value of P 20. The following transactions took place in relation to the share capital: May 2 Issued 25,000 shares for cash at par value. 5 Issued 5,000 shares to Atty. Fernan for services in organizing the corporation. The value of the services was P 120,000. 18 Issued 4,000 shares to corporate promoters. Each ordinary share is selling at P 30 on this date. 25 Issued 20,000 shares in exchange for Land valued at P 600,000. 30 Issued for cash 10,000 shares at P 23 per share Prepare journal entries to record the above transactions including authorized capital dated May 2, using the memorandum method.
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The League Corporation is authorized to issue 100,000 shares of Ordinary Share Capital with a par value of P 20. The following transactions took place in relation to the share capital: |
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May 2 |
Issued 25,000 shares for cash at par value. |
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5 |
Issued 5,000 shares to Atty. Fernan for services in organizing the corporation. The value of the services was P 120,000. |
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18 |
Issued 4,000 shares to corporate promoters. Each ordinary share is selling at P 30 on this date. |
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25 |
Issued 20,000 shares in exchange for Land valued at P 600,000. |
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30 |
Issued for cash 10,000 shares at P 23 per share |
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Prepare |
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