Professional Documents
Culture Documents
Institute of Accounts, Business and Finance Conceptual Framework and Accounting Standards
Problem 1
Edison Tech Corporation was organized on February 3, 2019 with authorized share capital consisting of 200,000 shares of P 70 par
value 12% preference share capital and 400,000 shares of ordinary share capital with P 40 stated value. The following transactions
occurred during February and March:
Instruction: Prepare the journal entries using (1) Memorandum Entry Method and (2) Journal Entry Method.
Problem 2
Oricon Paper Corporation started its business on May 1, 2018. Based on its Articles of Incorporation the corporation is authorized to
issue 500,000 ordinary shares with P 20 par value per share. Presented below is the corporation’s contributed capital as of December 31,
2018:
Questions:
(a) How many shares were issued?
(b) Assuming all issued shares were sold for the same price, how much is the original issued price per share?