Reference no: EM133024647

Problem - V. Dunden Company was organized on January 3, 2015 with capital stock authorized as follows:

Cumulative 12%, Preference shares, P100 par value, 30 000 shares

Ordinary shares, no par value; stated value, P50,100,000 shares

The company issued stock certi?cates when subscriptions are fully paid. The transactions concerning the capital stock are listed below.

a. 4,000 ordinary shares were issued for cash at P60 per share.

b. 1,000 preference shares were issued at par for cash.

c. 10,000 ordinary shares were issued for land P150,000; Building P,200,000; Equipment P15,000; Machineries P100,000.

d. 5,000 preference shares were subscribed at par value.

e. 500 preference shares were issued in payment of organization cost of P60,000.

f. One half of letter (d) subscription were collected.

g. 4,000 preference shares were issued for cash at 20% premium.

h. 8,000 preference shares were subscribed for at P,800,000.

i. 40% of the above subscriptions were collected.

j. Letter (d) subscriptions were collected in full.

Required - Prepare journal entries using memorandum entry method.