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Accounting For Share Issuance
Accounting For Share Issuance
Share Issuance
Bridging Corporation issued 250 P10 par value ordinary shares for P18 each.
Cash P 4, 500
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2
3
4
5 Ordinary Share Capital P 2, 500
Share Premium-OS 2, 000
Share Issuance for Cash
Bridging Corporation issued 600 P25 par value ordinary shares for P32 each.
Cash P 19, 200
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2
3
4
5 Ordinary Share Capital P 15, 000
Share Premium-OS 4, 200
Share Issuance for Cash
Bridging Corporation issued 600 P25 par value ordinary shares for P22, 000 .
Cash P 22, 000
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2
3
4
5 Ordinary Share Capital P 15, 000
Share Premium-OS 7, 000
Share Issuance for Cash
Bridging Corporation issued 600 P25 par value ordinary shares for P 18, 000.
Cash P 18, 000
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2
3
4
5 Ordinary Share Capital P 15, 000
Share Premium-OS 3, 000
Conclusion
Bridging Corporation issued 2500 P100 par value ordinary shares in exchange
for a used van with a book value of P400, 000 and a fair value of P 290, 000.
Bridging Corp.’s share is selling at P102 each on the date of exchange.
Bridging Corporation issued 2500 P100 par value ordinary shares in exchange
for a used van with a book value of P400, 000 but fair value is undetermined as
of date. Bridging Corp.’s share is selling at P102 each on the date of exchange.
Bridging Corporation issued 2500 P100 par value ordinary shares in exchange
for a used van with a book value of P400, 000 and a fair value of P 200, 000.
Bridging Corp.’s share is selling at P102 each on the date of exchange.
The fair value of the service vehicle cannot be used because it is lower than the aggregate par
value of shares issued and when used, it will render the stocks watered.
Share Issuance for Non-Cash Asset
Bridging Corporation issued 2500 P100 par value ordinary shares in exchange
for a used van with a book value of P400, 000. No data on fair market values of
both asset and shares were determinable
If both fair values are not given, the asset must be recorded using the PAR/STATED value of
the shares.
Conclusion
Bridging Corporation issued 700 P50 par value ordinary shares in exchange for
plumbing services for the company building. The work was done in 10 days and
the daily rate of the plumbing team amounts to P5, 000.
Bridging Corporation issued 1000 P20 par value shares to each of the five vice
presidents of the company as a remuneration for their service and loyalty. The
services earned the company P 5, 000, 000 for the year and boost the
company’s share to P 75 market price.
Compensation/Salaries Expense P 375, 000
Ordinary Share Capital P 200, 000
Share Premium-OS 175, 000