Reference no: EM133014568

Question - Matt Ching Corp. was authorized to issue 100,000 shares of common stock with a P50 stated value and 200,000 shares of 12% preferred stock, P100 par value. At the end of the Ist year of operation, its trial balance included the following account balances:

Preference Shares: P5,420,000O

Ordinary Share Capital: 1,880,000

Subscription Receivable - Ordinary: 212,000

Subscription Receivable - Preference: 550,000

Subscribed Preference Share Capital: 660,000

Subscribed Ordinary Share Capital: 330,000

Preference Share - Additional Pain In Capital: 154,000

Ordinary Share - Additional Pain In Capital: 20,000

(a)  Assume all invested in cash, how much is the total cash collected by the Corp.?

(b) Assume the following transactions took place: The subscription receivable is due in one month after the first year of operation. A stockholder with a subscription balance od P12,000 for 200 ordinary shares defaulted on the scheduled payment. This was offered for sale at a public auction. Advertising and other expenses amounted to P2,500. The highest bidder, for 150 shares, paid a total of P15,000 including interest. Prepare the journal entries.

(c) If 100 shares were reacquired by the corporation for P15,000. Half of which were later sold for p13,000, what are the entries to record the transactions?

(d)  If 10,000 preference shares were retired at P75 per share, what are the entries to be prepared?