PROBLEM 20-2

1 Unissiued Share Capital 5,000,000.00

Authorized Share capital 5,000,000.00
(50,000x100)

Subscription Receivable 2,000,000.00

Subscribed Share Capital 2,000,000.00
(40% x 50,000) x 100

2 Cash 500,000.00
Subscription Receivable 500,000.00
(2m x 25%)

3 Cash 750,000.00
Subscription Receivable 750,000.00
10,000 x 100 x 75%

Subscibed Share Capital 1,000,000.00

Unissued share capital 1,000,000.00
(10,000sh x100

4 Patent 500,000.00
Share capital 500,000.00
(100 x 5,000sh)

5 Cash 1,800,000.00
Unissued Share Capital 1,500,000.00
Share capital premium 300,000.00
(15,000sh x 120

B Authorised share capital 5,000,000.00

Unissued share capital (30,000 2,000,000.00
Issued Share capital 3,000,000.00
Subscribed Share CAPITAL 1,000,000.00
Share capital receivable 750,000.00
Share premium 300,000.00
Shareholder's equity 3,550,000.00
 PROBLEM 20-3

1 Subscription Receivable 4,000,000.00

Subscribed Share capital 4,000,000.00
(40,000sh x 100

2 Account Receivable 350,000.00

Notes Receivable 70,000.00
Inventory 680,000.00
Accounts Payable 100,000.00
Subscription Receivable 1,000,000.00

3 Land 150,000.00
Building 850,000.00
Subscriptions Receivable 1,000,000.00

4 Cash 375,000.00
Subscriptions Receivable 375,000.00
(15,000sh X 100 x 25%

5 Legal expenses 50,000.00

Share Capital 50,000.00
500 shares

6 Subscription Receivable 120,000.00

Subscribed Share capital 100,000.00
Share capital premium 20,000.00
(1,000sh x 120)

Cash 40,000.00
Subscription Receivable 40,000.00
(1,000 sh x 40

7 Cash 1,100,000.00
Subscription Receivable 1,100,000.00
(A = (12,000sh x 100) - 1,000,000 = 200,000
(B = (13,000sh x 100) - 1,000,000 = 300,00
(C = (8,000sh x 100 ) x 75% = 600,000

Subscribed Share Capital 3,300,000.00

share capital 3,300,000.00
(33,000 x 100

B Issued Share Capital ( 500 + 33,000 shares 3,350,000.00

Subsribed Share Capital ( 4m + 50k - 3.3m 800,000.00
Subsciption Receivable ( 605,000.00
Share premium 20,000.00
Shareholder's equity 3,565,000.00
 PROBLEM 20-4

1 Authorized to issue 30,000 preference shares for 100 par and 100,000 ordinary shares for 50 par

2 Cash 2,400,000.00
Ordinary Share Capital 2,000,000.00
Ordinary Share Premium 400,000.00
(40,000sh x 60)

3 Cash 1,200,000.00
Preference Share Capital 1,000,000.00
Preference Share Premium 200,000.00
(10,000sh x 120

4 Subscription Receivabl 1,000,000.00

Subscribed Preference Share capital 1,000,000.00
(10,000sh x 100

5 Cash 400,000.00
Subscription receivable 400,000.00

6 Legal Expenses 100,000.00

Preference Share capital 100,000.00
(1,000shares

7 Property, plan, and equipment 1,300,000.00

Ordinary Share Capital 1,300,000.00
(20,000 shares )

8 Subscription Receivable 750,000.00

Subscribed ordinary share capital 750,000.00
(15,000 x 50

9 Cash 300,000.00
Subscription Receivable 300,000.00
(40% x 750000

10 Cash
Subscription Receivable 600,000.00
(1m -400k 600,000.00

Subscribed Preference Share Capital 1,000,000.00

Preference Share capital 1,000,000.00

11 Profit and Loss 2,000,000.00

Retained Earnings 2,000,000.00
Issued Ordinary Share Capital 2,000,001.00
Issued Preference Share Capita; 2,100,000.00
Subscribed Ordinary share capital 750,000.00
Subscription Receivable 900,000.00