IA_VALIX2 Problem 20-3

Bump Company is authorized to issue 50,000

shares at P 100 par.
1. Subscription Receivable ( 40,000 x P 100) 4,000,000
Subscribed Capital Stock ( 40,000 x P 4,000,000
100)

2. Accounts Receivable 350,000

Notes Receivable 70,000
Inventory 680,000
Accounts Payable 100,000
Subscription Receivable (A) 1,000,000

3. Land 150,000
Building 850,000
Subscription Receivable (B) 1,000,000

4. Cash ( 8,000 + 4,000 + 3,000) x P 100 x .25 375,000

Subscription Receivable 375,000

5. Legal Expense 50,000

Capital Stock ( 500 x P 100) 50,000

6. Cash ( 40 X 1,000) 40,000

Subscription Receivable ( 120 -40) x P 1,000 80,000
Subscribed Capital Stock ( 1,000 x P 100,000
100)
Share Premium ( 1,000 x 20) 20,000

7. Cash 200,000
Subscription Receivable (A) 200,000

Cash ( 13,000 x 100) – 1,000,000 300,000

Subscription Receivable (B) 300,000

Cash (8,000 x P100 x .75) 600,000

Subscription Receivable (C) 600,000
 Subscribed Capital Stock (12.000 + 13,000 + 3,300,000
8,000) x P 100
Share Capital 3,300,000

Share Capital ( 33,500 shares at P 100 3,350,000

par)
Subscribed Capital Stock (41,000 – 800,000
33,000) x P 100
Less : Subscription Receivable 605,000 195,000
Share Premium in excess of Par 20,000
Shareholders’ Equity 3,565,000