Problem 9.

1-1
1)

GENERAL JOURNAL
Date Page Number 01
Descriptions PR Debit Credit
Memo Entry

Cash Php 2,400,000

Ordinary Shares Php 2,000,000

Share Premium - Ordinary Shares 400,000

Cash 1,200,000
Preference Shares 1,000,000

Share Premium - Preference Shares 200,000

Subscriptrions Receivable 1,000,000

Subscribed Preference Shares 1,000,000

Legal Fees 100,000

Preference Shares 100,000

PPE 1300000
Ordinary Shares 1000000

Share Premium - Ordinary Shares 300000

Subscriptions Receivable 750000

Subscribed Ordinary Shares 750000

Cash 300000
Subscriptions Receivable 300000

Cash 600000
Subscriptions Receivables 600000

Subscribed Preference Shares 1000000

Preference Shares 1000000

Sales 2000000
Retained Earnings 2000000

2)
Ordinary Shares
(40,000 x 50) 2,000,000
(20,000 x 50) 1,000,000
TOTAL Php 3,000,000

Preference Shares Capital

(10,000 x 100) 1,000,000
(1,000 x 100) 100,000
(10,000 x 100) 1,000,000
TOTAL Php 2,100,000

Share Premium - Ordinary Shares

(2,400,000 - 2,000,000) 400,000
(1,300,000 - 1,000,000) 300,000
TOTAL Php 700,000

Share Premium - Preference Shares

(1,200,000 - 1,000,000) Php 200000

Subcriptions Receivable
(15,000 x 50) 750,000
40% (300,000)
Subcription Recievable Outstanding Php 450,000

Problem 9.1-2
1)

GENERAL JOURNAL
Date Page Number 01
Descriptions PR Debit Credit
Preference Share Capital Php 500,000
Share Premium - Preference Shares 50,000
Ordinary Share Capital Php 250,000
Share Premium - Ordinary Shares 300,000

Preference Shares 500,000

Share Premium - Preference Shares 50,000
Discount on Ordinary Shares 450,000
Ordinary Share Capital 1,000,000

2)

Cash Php 500,000

Preference Share Capital Php 500,000
 Preference Share Capital 500,000
Retained Earnings 100,000
Cash 600,000

Cash 500,000
Preference Share Capital 500,000

Preference Share Capital 500,000

Cash 400,000
Share Premium 100,000

Problem 9.1-3

Ordinary Shares Preference Shares

Market Value 3,600,000 5,400,000
Ratio 0.4 0.6
Allocated Php 3,200,000 Php 4,800,000

3)
Proceeds from Preference Shares 4,800,000
Par Value of Preference Shares (4,000,000)
Share Premium - Preference Shares Php 800,000

4)
Proceeds from OS 3,200,000
Par Value of Ordinary Shares (2,000,000)
Share Premium - Ordinary Shares Php 1,200,000

Problem 9.1-4

Ordinary Share with Par Value

Total Amount 50,000,000
No. of shares 500,000
Par Value per Share 100

Ordinary Share No Par Value

Total Amount 10,000,000
No. of shares 500,000
Stated Value 20
 Total
9,000,000
1
Php 8,000,000