TORALDE, MA.KRISTINE E.

CBET-01-501E

2-1

 Cash (20,000 x P500) P 10,000,000

Ordinary Share Capital P10,000,000

 Legal Expense 180,000

Ordinary Share Capital (300 x P500) 150,000
Share Premium - ordinary 30,000

 Land 5,000,000
Building 3,000,000
Ordinary Share Capital (12,500 x P500) 6,250,000
Share Premium - ordinary 1,750,000

 Cash (6,500 x P550) 3,575,000

Ordinary Share Capital (6,500 x P500) 3,250,000
Share Premium - ordinary 325,000

 Cash (20,000 x P550 x 25%) 2,750,000

Subscription Receivable (11M x 75%) 8,250,000
Subscribed Ordinary Share Capital (20,000 x P500) 10,000,000
Share Premium - ordinary 1,000,000

 Cash (12,000 x P550 x 75%) 4,950,000

Subscription Receivable 4,950,000

 Subscribed Ordinary Share Capital (12,000 x P500) 6,000,000

Ordinary Share Capital 6,000,000

2-2
a) Cash (10,000 x P200) P2,000,000
Ordinary Share Capital (10,000 x P150) P1,500,000
Share Premium – ordinary 500,000

Share Premium – ordinary 60,000

Cash 60,000

b) Land (3,500 x P560) 1,960,000

Ordinary Share Capital (3,500 x 200) 700,000
Share Premium 1,260,000
 c) Cash 18,000,000
Ordinary Share Capital (100,000 x P100) 10,000,000
Share Premium – ordinary 3,500,000
Preference Share Capital (5,000 x P500) 2,500,000
Share Premium – preference 2,000,000

Allocation:
Class Total Fair Values Allocated
Ordinary (100,000 x 120) 12,000,000 13,500,000 (18M x 12/16)
Preference (5,000 x 800) 4,000,000 4,500,000 (18M x 4/16)
16,000,000 18,000,000

d) Cash (5,000 x P120 x 25%) 150,000

Subscription Receivable 450,000
Subscribed Ordinary Share Capital (5,000 x P100) 500,000
Share Premium – ordinary 100,000

e) Land 5,000,000
Cash 40,000
Donated Capital 4,960,000

2-3

Ordinary Share Capital P 380,000

Preference Share Capital 1,500,000
Subscribed Ordinary Share Capital (10,000 x P16) 160,000
Treasure Shares (1,000 x P18) ( 18,000)
Retained Earnings 350,000
Total Shareholders’ Equity P 2,372,000

2-4

a) (1) Treasury Shares (10,000 x P14) P 140,000

Cash P140,000

(2) Cash (4,000 x P15) 60,000

Treasury Shares (4,000 x P14) 56,000
Share Premium –treasury shares 4,000

(3) Cash (5,000 x P13) 65,000

Share Premium – treasury shares 4,000
Retained Earnings 1,000
Treasury Shares 70,000
 (4) Ordinary Share Capital (1,000 x P10) 10,000
Share Premium – ordinary (1,000/100,000 x P300,000) 3,000
Retained Earnings 1,000
Treasury Shares (1,000 x P14) 14,000

b) Total Shareholders’ Equity, December 31, 2019

Ordinary Share Capital, P10 par P 1,000,000
Share Premium 300,000
Retained Earnings 900,000 P 2,200,000

Treasury Share transactions took place in 2020:

Treasury Shares (140,000)
Sale of Treasury Shares (4,000 x P15) 60,000
Sale of Treasury Shares (5,000 x P13) 65,000
Profit for the year 280,000
Cash Dividends Declared (200,000)
Total Shareholders’ Equity, December 31, 2020 P 2,265,000

2-5

(a) Preference Share Capital (4,000 x P20) P80,000

Share Premium – preference (4,000/100,000 x P160,000) 6,400
Paid in Capital from Retirement of Preference Shares P2,400
Cash (4,000 x P21) 84,000

(b) Preference Share Capital (4,000 x P20) 80,000

Share Premium – preference (4,000/100,000 x P160,000) 6,400
Retained Earnings 17,600
Cash (4,000 x P26) 104,000