Sir Win – Accounting Lectures

Jokes Tagalog
Stories Legit Professor
Life Lessons

--------------------------------------------------------------------------------------
-------------------
Lecture 04: Share Capital
--------------------------------------------------------------------------------------
-------------------
Amity Inc. was incorporated on January 2, 2021 and has been
authorized to issue 500,000 shares of P10 par ordinary shares. The
following 2021 transactions relate to the initial issuance of Amity
share:

Feb 1 Amity sold subscriptions for 25,000 shares of stock.

The shares have a subscription price of P15 per
share. One-third of the subscriptions price was
received as a down payment.

Mar 9 Issue 1,000 shares as payment for incorporating the

business for 15,000.

Apr 13 An installment amounting to one-third of the

subscription price was received.

May 19 Amity exchanged 200 shares of stock for a furniture

having a fair market value of 3,800.

Jun 3 The final one-third of the subscription price was

received and the shares issued.

Jul 11 Reacquired 2,500 share at P12 of Amity to be held

in treasury

Aug 8 Amity sold subscriptions for 25,000 shares of stock.

The shares have a subscription price of P18 per
 Sir Win – Accounting Lectures
Jokes Tagalog
Stories Legit Professor
Life Lessons
share. No down payment was received.

--------------------------------------------------------------------------------------
-------------------
Lecture 04: Share Capital
--------------------------------------------------------------------------------------
-------------------

Sept 9 Reissued 1,000 share of treasury at cost.

Oct 5 Amity sold 10,000 shares for 180,000.

Nov 15 Collected 20% of the total subscription price on

August 8.

Dec 31 Income at year end amounted to 250,000.

Prepare journal entries to record the transactions.