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.

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.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 3CE: Prepare general journal entries for the following transactions of GOTE Company: (a) Received...

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