UNIVERSAL COLLEGES OF PARANAQUE INC.

COLLEGE OF BUSINESS AND ACCOUNTANCY

FINANCIAL ACCOUNTING AND REPORTING 2

CLASSROOM DISCUSSION 3: (30 MINS ONLY)

AS THE MANAGER OF A LARGE DEPARTMENT STORE, NANCY CRUZ WISHES TO OPEN HER OWN
DEPARTENT STORE AND NAME THE CORPORATION STARBRIGHT DEPARTMENT STORE. SHE
INVITED HER RELATIVES AND FRIENDS TO FORM A CORPORATION ON SEPTEMBER 2020;

SEP 1 – AUTHORIZED TO ISSUE 50,000 SHARES OF P100 PAR VALUE COMMON STOCK

ISSUED FOR CASH 10,000 SHARES OF COMMON STOCK AT PAR. THE SHARES WERE
PURCHASED BY NANCY. HER HUSBAND, PAUL, SUBSCRIBED TO 4,000 SHARES AT PAR AND PAID
20%.

THE BALANCE IS TO BE PAID ON SEPTEMBER 2. (FERNANDO) – 1PT MIDTERM EXAM

SEP 5 – RECEIVED SUBSCRIPTION FROM BETH OLARTE, PAULINE SANTOS AND CRIS BORJA FOR
1,000 SHARES EACH AT P120 PER SHARE. EACH INCORPORTATOR MADE A DOWNPAYMENT OF P60
PER SHARE AND PROMISE TO PAY THE BALANCE BY SEPTEMBER 30. (MISAKI) 1PT MIDTERM
EXAM

SEP 6 – PROMOTION, CONSULTATION AND ADVERTISING COSTS AMOUNTED TO P50,000.

(LITA)-1PT MIDTERM EXAM.

SEP 8 – ISSUED 300 SHARES OF COMMON STOCK TO ATTORNEY BERRY VASQUEZ IN EXCHAGE
FOR HIS SERVICES IN ORGANIZING THE COMPANY. THE FAIR VALUE OF HIS SERVICE WAS P34,000.

(PAEL) – 1PT MIDTERM EXAM

SEP 10 – WENCY TAN BOUGH 400 SHARES AT 110% OF THE PAR VALUE.

A MACHINE COSTING P25,000 WITH A BOOK VALUE OF P20,000 AND A MARKET VALUE OF P15,000
WAS GIVEN PLUS CASH TO COME UP WITH A 50% DOWN PAYMENT. THE BALANCE WILL BE PAID
ON SEPTEMBER 30.

SEP 20 – EXCHANGED 1,000 SHARES OF COMMON STOCK FOR EQUIPMENT OWNED BY ADELA
VILLA HAVING A FAIR MARKET VALUE OF P120,000.(RAMILO) – 1PT MIDTERM

SEP 25 – RECEIVED FULL PAYMENT FROM OLARTE AND BORJA AND ISSUED STOCK
CERTIFICATES TO THEM.(RASALAN) -1PT MIDTERM

SEP 31 – VILLA NOTIFIED THE CORPORATION OF THE TRANSFER OF 400 SHARES TO WENCY TAN.

PAID FOR PURCHASES, PRINTING AND REGISTRATION OF CERTIFICATES , P10,000.

(REPRE) – 1PT MIDTERM EXAM