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Prepare the contributed capital section of the statement

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Question - Financial Accounting - Corporation: Formation and Share Capital Transactions

1. Goodwill Corporation was authorized to issue 60,000, 100 par value ordinary share capital on November 3, 2021.

The following are share capital transactions completed during the month of November:

Nov. 4- Issued 9,000 shares to David at par.

Nov. 7- Received subscription from Ramos for 5,500 shares at 120 per share.

Nov. 11- Received subscription from Vargas for 6,000 shares at 125 per share. 25% down payment was collected.

Nov. 15- Collected in full the subscription of Ramos and share certificate was correspondingly issued.

Nov. 21- Issued 1,000 years in exchange for machinery with equivalent cash price of 125,000.

Nov. 22- Receive full payment from Vargas.

Nov. 24- Received a statement of account for the services rendered by Delgado, for drafting and filing the Articles of Incorporation and the corporate by-laws. The bill is for 60,000 which is settled by issuing 500 ordinary shares.

Nov. 30- The remaining shares were subscribed by Bautista at 130 per share. The corporation collected 40% of the subscription price, the balance is payable on or before January 31, 2022.

Required -

(a) Journalize the foregoing transactions using the memorandum entry method.

(b) Prepare the contributed capital section of the statement of financial position at December 31, 2021, assuming that there were no other transactions that occurred during December relating to share capital.

Reference no: EM132814375

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