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The Fernandez Corporation was incorporated on september 1, 2018 and was outherized to issue share capital as follows :
200,000 shares of no par ordinary share 5, 000 shares of 6% preference share at a par value of P200
The Following share capital transactions took place in september and october 2018.
Problem a . On september 14, subscriptions were received for the authorized ordinary shares at P30 per share on the following terms : 25 % down in cash at the date of subscription, the balance is payable in three equal installments due on October 15 , November 15 and December 15 .
Problem b. On september 18 , all of the preference shares are sold for cash at 1220 per share . Transaction costs of provo were incurred and paid.
Problem C. On october Is, collected the first installment of the subscription in ( a )
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