Solution-Prepare the entries under the memorandum

Prepare the entries under the memorandum

Reference no: EM133076605

Question - Prepare the entries under the memorandum method to record each of the following transactions and prepare the shareholders' equity portion of JO's Corp. balance sheet. You may omit the narrative descriptions for the entries.

a. JO's Corp. received authorization from the SEC to issue share capital of 10,000,000 divided into 2,000,000 shares with par value per share of 5.

b. JO's Corp. received subscription for 500,000 shares at par value. Fifty per cent of the total subscription price was paid on subscription date.

c. JO's Corp. received full payment of 500,000 subscribed shares from transaction (B) above.

d. JO's Corp. issued 30,000 shares for cash at 20 per share.

e. JO's Corp. issued 20,000 shares in exchange for equipment with a fair value of 150,000.

f. JO's Corp. reacquires 10,000 shares for cash at 15 per share.

g. JO's Corp. reissues the 5,000 treasury shares at 10 per share.

Reference no: EM133076605

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Prepare the entries under the memorandum

Reference no: EM133076605

Reference no: EM133076605

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