Timber Company presented a statement of financial position containing the following accounts among others: Subscriptions receivable- preference 120,000 Subscriptions receivable- ordinary 360,000 Preference share capital, P100 par, authorized 100,000 shares, issued and outstanding 22,000 shares 2,200,000 Preference share capital subscribed, 2,000 shares 200,000 Ordinary share capital, P10 par value, authorized 200,000 shares, issued and outstanding 24,000 shares 240,000 Ordinary share capital subscribed, 24,000 shares 240,000 Share premium- preference 80,000 Share premium- ordinary 950,000 The corporation was organized at the beginning of current year and immediately received subscriptions to 20,000 preference shares. Subscriptions to ordinary shares were received on the same date. During the year, subscriptions were received for an additional 4,000 preference shares at a price of P120 per share. Cash payments were received from subscribers at frequent intervals for several months after subscription. The entity followed a policy of issuing share certificates only when subscribers had paid in full. During the year, the entity issued 8,000 ordinary shares in exchange for tract of land with a fair value of P230,0000. Required: Prepare journal entries for all the transactions carried out during the year indicated by account balances. Compute the amount contributed capital for each class of share share capital at year-end.
Timber Company presented a
Subscriptions receivable- preference 120,000
Subscriptions receivable- ordinary 360,000
100,000 shares, issued and outstanding 22,000 shares 2,200,000
Preference share capital subscribed, 2,000 shares 200,000
Ordinary share capital, P10 par value, authorized
200,000 shares, issued and outstanding 24,000 shares 240,000
Ordinary share capital subscribed, 24,000 shares 240,000
Share premium- preference 80,000
Share premium- ordinary 950,000
The corporation was organized at the beginning of current year and immediately received subscriptions to 20,000 preference shares. Subscriptions to ordinary shares were received on the same date.
During the year, subscriptions were received for an additional 4,000 preference shares at a price of P120 per share.
Cash payments were received from subscribers at frequent intervals for several months after subscription. The entity followed a policy of issuing share certificates only when subscribers had paid in full.
During the year, the entity issued 8,000 ordinary shares in exchange for tract of land with a fair value of P230,0000.
Required:
- Prepare
journal entries for all the transactions carried out during the year indicated by account balances. - Compute the amount contributed capital for each class of share share capital at year-end.
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