ACCOUNTING FOR CORPORATION

07 Activity 1
Group 2

Memo Entry Method

Jan. 1
Preference Share Capital Ordinary Share Capital
Authorized 50,000 preference shares with Authorized 100,000 Ordinary shares with
a par value of P150 per share a Stated value of P100 per share

Jan. 3
Title Debit Credit
Cash 6,260,000
Subscribed Preference Share Capital 3,000,000
Subscribed Ordinary Share Capital 3,000,000
Preference Share Premium 200,000
Ordinary share capital in excess of stated value 60,000

Jan. 5
Title Debit Credit
Legal Fees 25,000
Ordinary Share Capital 20,000
Ordinary share capital in excess of stated value 5,000

Jan. 10
Title Debit Credit
Cash 260,000
Ordinary Subscription Receivable 780,000
Subscribed Ordinary Share Capital 1,000,000
Ordinary share capital in excess of stated value 40,000

Jan. 12
Title Debit Credit
Cash 310,000
Preference Subscription Receivable 465,000
Subscribed Preference Share Capital 750,000
Preference Share Premium 25,000
 ACCOUNTING FOR CORPORATION
07 Activity 1
Group 2
Jan. 25
Title Debit Credit
Cash 780,000
Ordinary Subscription Receivable 780,000
Subscribed Ordinary Share Capital 1,040,000
Ordinary share capital 1,040,000

Jan. 26
Title Debit Credit
Land 220,000
Ordinary Share Capital (2000 * 100) 200,000
Ordinary share capital in excess of stated value () 20,000

Jan. 27
Title Debit Credit
Equipment 80,000
Preference Share Capital 75,000
Preference Share Premium 5,000

Jan. 28
Title Debit Credit
Loan 38,000
Ordinary Share Capital 30,000
Ordinary share capital in excess of stated value 8,000

Jan. 30
Title Debit Credit
Cash 465,000
Preference Subscription Receivable 465,000
Subscribed Preference Share Capital 775,000
Preference Share Capital 775,000
 ACCOUNTING FOR CORPORATION
07 Activity 1
Group 2
SHAREHOLDER’S EQUITY
Preference share capital, 50,000 shares authorized ₱ 850,000
Par value at P150, issued 25,000 shares ₱ 2,975,000
Subscribed preference share capital ₱ - ₱ 2,975,000
Less: preference subscription receivable ₱ 3,825,000
Paid-in preference share capital
Ordinary share capital, 100,000 shares authorized
Stated value at P100, issued 42,500 shares ₱ 1,290,000
Subscribed ordinary share capital ₱ 2,960,000
Less: ordinary subscription receivable ₱ - ₱ 2,960,000
Paid-in ordinary share capital ₱ 4,250,000
Total paid in share capital ₱ 8,075,000
Add: Preference share premium ₱ 230,000
Ordinary share capital in excess of stated value ₱ 133,000 ₱ 363,000
Total Shareholder’s equity ₱ 8,438,000

• Gelyn Dichoso
• Lorie Ann Caintoy
• Jeremie Kaye Llona
• Alfred Sistoso
• Claire Babasa
• Ian Angelo Pesebre
• Christine Beato
• Stephen Paul Hao
ACCOUNTING FOR CORPORATION
07 Activity 1
Group 2