Name College of St.

Benilde
BUSIACC

La Bambina Incorporated was organized on January 15, 2020. The firm's charter authorized the
issuance of the following:
8% Cumulative Preferred Share, P100 par, 20,000 shares
Common stock, no par, 50,000 shares
The Board of Directors has established a P50 stated value on the common stock.

The following transactions occurred during the first three month of the year:
Jan. 20 Corporators subscribed for 13,000 shares of common stock for P60 per share with
50% payment received and the balance is payable 45 days after.
25 Subscription for 5,000 preferred shares at P120 per share with 40% payment
received. The balance will be payable 60 days after.
30 Sold 750 shares of preferred shares to Alicia Company for P125 per share for cash
and the shares were issued.
Feb. 20 Received land costing P125,000 for 1,000 preferred shares. Appraised value of
the land is 240% of its cost. Shares were issued.
27 Legal and promotional cost were paid P35,000.
Mar. 3 Received subscription contract from various investors to purchase 2,500 shares
of common stock at P65 per share with a 25% down payment, balance due on
April 17, 2020.
6 Collected the amount due from the corporators. Shares were issued.
10 Received subscriptions from various investors for 4,500 common shares at P65 each.
12 Issued 500 preferred shares for P130 per share.
15 Received 30% payment from the March 10 subscribers.
25 Issued 60 preferred shares to Atty. Luna for the P13,750 bill received for his services
rendered during the incorporation.
26 Payment receiived from Jan. 25 subscribers for 4,000 shares.

Prepare the entries using the journal entry method for the transactions given.
Then, prepare the trial balance as at March 31, 2020 using a T-account.

La Bambina Inc.
Journal Entries
Date Particular DR CR
20-Jan Cash ₱ 390,000.00
Subscription receivable- ordinary share ₱ 390,000.00
Subscribed share capital- ordinary ₱ 650,000.00
Share premium- ordinary ₱ 130,000.00
25-Jan Cash ₱ 240,000.00
Subscription receivable- preference share ₱ 360,000.00
Subscribed share capital- preference ₱ 500,000.00
Share premium- preference ₱ 100,000.00
30-Jan Cash ₱ 93,750.00
Preferrence Share Capital ₱ 75,000.00
Share Premium- preference ₱ 18,750.00
20-Feb Land ₱ 300,000.00
Preferrence Share Capital ₱ 100,000.00
Share Premium- preference ₱ 200,000.00

27-Feb Share issuance cost ₱ 35,000.00

cash ₱ 35,000.00

3-Mar Cash ₱ 40,625.00

Subscription receivable- ordinary share ₱ 121,875.00
Subscribed share capital- ordinary ₱ 125,000.00
Share premium- ordinary ₱ 37,500.00
6-Mar Cash ₱ 390,000.00
Subscribed share capital- ordinary ₱ 650,000.00
Subscription receivable - ordinary share ₱ 390,000.00
Ordinary share capital ₱ 650,000.00
12-Mar Cash ₱ 65,000.00
Preferrence Share Capital ₱ 50,000.00
share Premium- preference ₱ 15,000.00

15-Mar Cash ₱ 87,750.00

Subscription receivable- ordinary ₱ 87,750.00

25-Mar Organization Expense ₱ 13,750.00

Preferrence Share Capital ₱ 6,000.00
Share Premium- preference ₱ 7,750.00

26-Mar Cash ₱ 240,000.00

Subscriptiom receivable - preference ₱ 240,000.00

10-Mar Subscription receivable- ordinary share 292,500.00

Subscribe share capital- ordinary 225,000
Share premium- ordinary 67,500.00
 LA BAMBINA INC
Trial Balance
March 31,2020
Dr Cr
Cash 1,512,125
Subscription Receivable- Ordinary 326,625
Subscription Receivable- Preference 120,000
Land 300,000
Subscribed Share Capital- ordinary 350,000
Subscribed Share Capital- preference 500,000
Ordinary Share Capital 650,000
Preference Share Capital 231,000
Share Premium - Ordinary 235,000
Share Premium- Preference 341,500
Share issuance cost 35,000
Organization Expense 13,750
TOTALS 2,307,500 2,307,500