Name ____________________________________________ Section _________________

PROBLEM SOLVING Show supporting computations.

A. The following accounts are found in the trial balance of Dawn Corporation as December 31, 2019.
Authorized Ordinary share capital, P 100 par P 1,000,000
Unissued Ordinary share capital 300,000
Subscribed Ordinary share 200,000
Ordinary share subscription receivable 100,000
Ordinary share premium 70,000

1 The total number of shares issued is _________________________

.
2 The total number of shares still available for subscription is _________________
.

B. Pupil, Inc. prepares this journal entry on June 30, 2019. Issued ordinary share capital for P 140/share.
Cash 70,000
Ordinary share capital 65,000
Ordinary share premium 5,000

3. How many shares were issued? ______________________

4. What is the par value per share for this share capital? __________________

C. On January, 2019, Chicosci Corporation was incorporated with authorized Ordinary share capital of
P 3,000,000, divided into 100,000 shares with a par value per share of P 30. In February, 30,000 shares
were issued for P 40 per share. In July, 20,000 shares were subscribed at a price of P 45 per share. As of
December 31, 2019, one half of the subscription has been collected.

5. What amount will appear on the December 31, 2019 Statement of financial position as Ordinary Share
Capital? ____________________

D. The shareholders’ equity of Bamboo Corporation at the end of 2019 and 2018 is as follows:
2019 2018
Preference share capital, P 100 par P 1,000,000 P 600,000
Ordinary share capital, P 20 par 2,000,000 1,800,000
Preference share premium 16,000 -
Ordinary share premium 4,350,000 3,750,000
Retained earnings 80,000 180,000

6 How many shares of preference share capital were issued during 2019? _________________
.
7 At what average price was the preference share capital issued during 2019? ______________
.
8 Assuming no other transactions affected the Retained Earnings except for the result of the
. corporation’s operations, how much is the 2019 profit (net loss)? __________________

E. Typecast, Inc. was incorporated on January 2, 2019 with the following authorized capitalization:
 10,000 shares of preference share capital, P 100 par
 40,000 shares of ordinary share capital, P 40 stated value

During 2019, Typecast issued 24,000 Ordinary shares for a total of P 1,200,000 and 6,000 shares of
Preference share capital at P 106 per share. In addition, on December 20, 2019, subscriptions for 2,000
shares of preference share capital were taken at a subscription price of P 17. These subscribed shares were
paid for on January 2, 2020.
 9. How much is the total contributed capital as shown in the shareholders’ equity section of the
statement of financial position of Typecast, Inc. at the end of 2019? _________________________
10 What was the original issue price per share of Ordinary share capital? _______________________
.

F. The following data of Slapshock Corporation as of December 31, 2019 showed the following:
Preference share capital, P 100 par P 820,000
Ordinary share capital, P 30 par, 300,000 shares authorized,
100,000 shares issued and outstanding 3,000,000
Preference share premium 410,000
Ordinary share premium 3,300,000

11 What was the original issue price per share of preference share capital? ________________
.
12 What was the original issue price per share of ordinary share capital? ________________
.
13 How many shares of preference share capital were issued and outstanding as of December 31, 2019?
. ___________

G. Callalily Corp. is authorized to issue 100,000 shares of P 100 par value Ordinary share capital. Dior
subscribed to 1,000 shares at par value on June 1, 2019. A 25% down payment was given by Dior, the
balance payable in two equal installments payable on June 30 and July 31. He paid the first installment but
defaulted in the second. The unpaid subscription was offered for sale at public auction. Advertising cost
amounted to P 5,000. Tommy made a bid for 900 shares, Ricci for 800 shares, Paco for 600 shares and
Malone for 700 shares.

14 The highest bidder is ____________________

.
15 The amount due from the highest bidder is ____________________
.
16 The number of shares issued to the highest bidder is __________________
.
17 The number of shares issued to Dior ____________________
.

H. The statement of financial position of D & G Inc. showed P 30 par value 10% Preference share capital,
authorized shares of 9,000 with 1,200 shares issued at P 33/share and 3,000 shares subscribed at P 40/share
at the beginning of the year. At the end of the year, the issued shares have totaled 6,400 and subscribed
shares totaled 1,300 (collectible immediately).

18 If no other subscriptions were made during the year, issuance of shares for cash made during the year
. would have been _____________________.
19 At the end of the year, the Legal Capital would show a total of ____________________
.

I. Lacoste Inc., was organized on January 2, 2019 with a total authorized capital of P 2,000,000, P 20 par value.
Subsequently, incorporators subscribed for 25,000 shares at P 24.

20 How much must be paid up upon subscription to comply with the requirement of the Securities and
. Exchange Commission? _________________________