Group 4 Members

Fadrigalan, Mia P.
Gragasin, Charlie S.
Gutierrez, Erica Anne N.
Hamco, Gian Carlo G.
Ibuna, Niño S.

Exercise 8-7

Jun. 1 Authorized to issue 500,000 shares of ordinary share capital with a par value of P 20 per share.

Sep. 1 Ordinary Share Capital Subscription Receivable 3,750,000

Ordinary Share Capital Subscribed
Ordinary Share Premium
125,000 sh x P 30 = P 3,750,000
125,000 sh x P 20 = P 2,500,000
125,000 sh x P 10 = P 1,250,000

1 Cash 1,500,000
Ordinary Share Capital Subscription Receivable
P 3,750,000 x 40% = P 1,500,000

8 Land 750,000
Ordinary Share Capital
Ordinary Share Premium
25,000 sh x P 20 = P 500,000
P 750,000 – P 500,000 = P 250,000

10 Cash 750,000
Ordinary Share Capital Subscription Receivable
P 3,750,000 x 60% = P 2,250,000
P 2,250,000 x 1/3= P 750,000

20 Cash 750,000
Ordinary Share Capital Subscription Receivable
P 2,250,000 x 1/3= P 750,000

30 Cash 750,000
Ordinary Share Capital Subscription Receivable
P 2,250,000 x 1/3= P 750,000

30 Ordinary Share Capital Subscribed 2,500,000

Ordinary Share Capital
125,000 x P20 = P 2,500,000
par value of P 20 per share.

2,500,000
1,250,000

1,500,000

500,000
250,000

750,000

750,000

750,000

2,500,000
Exercise 8-8

Authorized to issue 500,000 shares of ordinary share capital with a stated value of P20.

a. Ordinary Share Capital Subscription Receivable 3,125,000

Ordinary Share Capital Subscribed 2,500,000
Ordinary Share Capital in Excess of Stated Value 625,000
125,000 sh @ P 25 = P 3,125,000
125,000 sh @ P 20 = P 2,500,000
125,000 sh @ P 5 = P 625,000

Cash 1,875,000
Ordinary Share Capital Subscription Receivable 1,875,000
P 3,125,000 x 60% = P 1,875,000

b. Cash 500,000
Ordinary Share Capital Subscription Receivable 500,000
50,000 x P 25 = P 1,250,000
P 1,250,000 x 40% = P 500,000

Ordinary Share Capital Subscribed 1,000,000

Ordinary Share Capital 1,000,000
50,000 sh x P20 = P1,000,000

c. Cash 600,000
Ordinary Share Capital Subscription Receivable 600,000
60,000 sh x P25 = P1,500,000
P1,500,000 x 40% = P600,000

Ordinary Share Capital Subscribed 1,200,000

Ordinary Share Capital 1,200,000
60,000 sh x P20 = P1,200,000

d. Receivable from Highest Bidder 150,000

Ordinary Share Capital Subscription Receivable 150,000
15,000 sh x P25 = P375,000
P375,000 x 40% = P150,000

e. Receivable from Highest Bidder 50,000

Cash 50,000

f. Cash 200,000
Receivable from Highest Bidder 200,000
P150,000 + P50,000 = P200,000
Ordinary Share Capital Subscribed 300,000
Ordinary Share Capital 300,000
15,000 sh x P20 = P300,000