Reference no: EM132460645
Formation and Share Capital Transactions
Corporation: Formation and Share Capital Transactions Nov . 15 Collected in full the subscription of Ramos and share certificate Problems was correspondingly issued.
Issued 1,000 shares in exchange for machinery with equivalent Good Harvest Corporation was incorporated on January 1, 2018, with cash price of P125,000. authorized share capital of 300,000 shares at P20 par value. Record the transactions completed during the months of January and February using
- Received full payment from Vargas.
(1) the memorandum entry method Received a statement of account for the services rendered by
(2) the journal entry method Delgado, for drafting and filing the Articles of Incorporation and the corporate by-laws. The bill is for P60,000 which is settled by issuing 500 ordinary shares.
a. The incorporators subscribed to twenty five percent of the authorized share capital and paid 25% of the subscription price.
The remaining shares were subscribed by Bautista at P130 per Good Harvest issued 10,000 shares for cash at P22 per share . share. The corporation collected 40% of the subscription price, the balance is payable on or before January 31, 2019. The corporation received subscription for 5,000 shares at P24 per share. Thirty percent of the subscription was collected
Required:
balance is due on March 31, 2018.
Question (a) The incorporators in (a) paid the balance due on their subscriptions, method. Journalize the foregoing transactions using the memorandum entry and the share certificates were accordingly issued.
Question (b ) Prepare the contributed capital section of the statement of financial position at December 31, 2018, assuming that there were no other Use the same information given in problem 1. Present the shareholders' transactions that occurred during December relating to share equity section of the statement of financial position of Good Harvest capital.
Corporation on February 28, 2018 using
(1) the memorandum entry method
(2) the journal entry method
The Fernandez Corporation was incorporated on September 1, 2018 and was authorized to issue share capital as follows:
Goodwill Corporation was authorized to issue 60,000, P100 par value 200,000 shares of no par ordinary share ordinary share capital on November 3, 2018. The following are share 5,000 shares of 6% preference share at a par value of P200
capital transactions completed during the month of November:
- The following share capital transactions took place in September and
- Nov. 4 Issued 9,000 shares to David at par. October 2018.
a. On September 14, subscriptions were received for the authorized share.
Received subscription from Ramos for 5,500 shares at P120 per ordinary shares at P30 per share on the following terms: 25%
down in cash at the date of subscription, the balance is payable in 11 Received subscription from Vargas for 6,000 shares at P125 per
three equal installments due on October 15, November 15 and share. 25% down payment was collected.
December 15. 216 217