every time nag iissue ng share ( kailangan buo, pag hindi pa buo Subscribed, dates kung kelan icocollect

,BOD NAGSESET)
Memorandum Entry Method

Aug1.
Authorized to issue 100,000 ordinary share P50 par and 50000 8% prference shares, 100 par

Cash 500,000.00
Subscription Receivable - Ordinary 1,000,000.00
Subscribed Ordinary Share Capital 1,500,000.00

5 Cash 1,000,000.00
Subscription Receivable - Preference 1,000,000.00
Subscribed Preference Share Capital 2,000,000.00

10 Cash 1,100,000.00
Ordinary Share Capital 1,000,000.00
Ordinary Share Premium 100,000.00

12 Equipment 560,000.00
Preference Share Capital 500,000.00
Preference Share Premium 60,000.00

30 Cash 1,000,000.00
Subscription Receivable - Preference 1,000,000.00

Subscribed Preference Share Capital 2,000,000.00

Preference Share Capital 2,000,000.00

1 Cash 500,000.00
Subscription Receivable - Ordinary 500,000.00

30 Cash 466,666.67
Subscription Receivable- Ordinary 466,666.67

Subscrbed Ordinary Share Capital 1,400,000.00

Ordinary Share Capital 1,400,000.00
tes kung kelan icocollect ,BOD NAGSESET)
Journal Entry Method

Unissued Ordinary Share Capital

0 8% prference shares, 100 par Authorized Ordinary Share Capital

no share premium pag at par

consideration received
always at par value "issued " fully paid

100,000.00

for 28000 shares

Subscription price 1,400,000.00

downpayment - 466,666.67
balance 933,333.33
1st installment - 466,666.67
2nd installment 466,666.67

for 2000 share

Subscription price 100,000.00

downpayment - 33,333.33
balance 66,666.67
1st installment - 33,333.33
2nd installment 33,333.33
 2 methods :
exervise 1

in terms of authorization : apg approved ng SEC , It is stated how many share of stock the company can sell
share stock / authorized share capital) ./ capital stock

subscription receivable
"shares are issued " symbolic

CERTIFICATE OF STOCKS
pag binayaran ng buo
MEMO CR SHARE CAPITAL and subscribed ordinary "always at par"
popular ung memo share premium/ paid in capital in excess of par ung difference
JOURNAL CR UNISSUED SHARE CAPITAL

buy shares, giving cash or services "Organization Expense"

2 class of share
if silent " ordinary share capital"
ex. In ayala " ordinary and preferrence share "
another strategy to increase capital

ordinary - right to vote

preferrence - di makakavote but priority sa distribution

33,333.33
e of stock the company can sell ( authorized
pital stock

n excess of par ung difference

 Memorandum Entry Method

Jan-01 Authorized to issue 18% cumulative preference shares, P100 par ,20000 share and
ordinary shares , no par, 50,000 shares but with a stated value of P50

5 Cash 500,000.00
Subscription Receivable - Ordinary 1,000,000.00
Subscribed Ordinary Share Capital 1,500,000.00

Cash 1,000,000.00
Subscription Receivable - Preference 1,000,000.00
Subscribed Preference Share Capital 2,000,000.00

10 Cash 1,100,000.00
Ordinary Share Capital 1,000,000.00 always at par value
Ordinary Share Premium 100,000.00

12 Equipment 560,000.00
Preference Share Capital 500,000.00
Preference Share Premium 60,000.00

30 Cash 1,000,000.00
Subscription Receivable - Preference 1,000,000.00

Subscribed Preference Share Capital 2,000,000.00

Preference Share Capital 2,000,000.00

1 Cash 500,000.00
Subscription Receivable - Ordinary 500,000.00

30 Cash -
Subscription Receivable- Ordinary -

Subscrbed Ordinary Share Capital 1,400,000.00

Ordinary Share Capital 1,400,000.00
"stated value" as if par value n naaadjust
cumulative preference shares- dividend rate

participating
non participating

Classroom assumption
share premium / paid in captal in excess of par
if no par and no stated value
no share premium
because s.p is the difference eh pag wala naman
no difference

share capital lang lahat

another method:
alternative method kahit may stated value , lahat padi nay share capital
 25% - subscribe, 25% paid sa bank
old : there is a pre incorportaration requirement na 25% fixed na
new : no more incorporation requirement

di nay share capital