EXERCISE 3-2

A. Memorandum entry method

Mar-01 Authorized to issue 500,000 shares ofordinary share capital with a par value of P20.

1 Cash
Ordinary Share Capital (200,000xP20)
Ordinary Share Premium

25 Pre-Operating Expense
Ordinary Share Capital
Ordinary Share Premium

Apr-28 Equipment
Ordinary Share Capital
Ordinary Share Premium

A. Journal entry method

Mar-01 Unissued Ordinary Share Capital

Authorized Ordinary Share Capital

1 Cash
Unissued Ordinary Share Capital
Ordinary Share Premium

25 Pre-Operating Expense
Unissued Ordinary Share Capital
Ordinary Share Premium

Apr-28 Equipment
Unissued Ordinary Share Capital
Ordinary Share Premium

EXERCISE 3-3

1) Authorized to issue 500,000 shares of ordinary share capital with a par value of P40.

Cash
Discount Ordinary Share Capital
 Ordinary Share Capital (220,000xP40)

2) Authorized to issue 500,000 shares of ordinary share capital with a state value of P15.

Cash
Ordinary Share Capital (220,000xP15)
Ordinary Share Capital in Excess of Stated Value

3) Authorized to issue 500,00 shares of no-par and no stated value Ordinary Share Capital

Cash
Ordinary Share Capital (220,000xP20)

EXERCISE 3-4

Authorized to issue 500,000 shares ofordinary share capital with a state value of P20.

A) Cash
Ordinary Share Capital (122,000xP25)

B) Pre-Operating Expense
Ordinary Share Capital (2,300xP25)
Ordinary Share Capital in Excess of Stated Value

C) Pre-Operating Expense
Discount Ordinary Share Capital
Ordinary Share Capital (2,000xP25)

D) Land
Ordinary Share Capital (10,000xP25)

E) Cash
Discount Ordinary Share Capital
Ordinary Share Capital

EXERCISE 3-5

Jun-01 Ordinary Share Capital Subscription Receivable (30,000xP30)

Ordinary Share Capital Subscribed (30,000xP20)
Ordinary Share Premium (30,000xP10)
 1 Cash
Ordinary Share Capital Subscription Receivable (900,000x.60)

Sept-08 Cash
Ordinary Share Capital Subscription Receivable (900,000x.40)

8 Ordinary Share Capital Subscribed (30,000xP20)

Ordinary Share Capital

8 Cash
Ordinary Share Capital Subscribed (30,000xP20)
Ordinary Share Premium (30,000xP10)

EXERCISE 3-6

Jul-01 Cash
Ordinary Share Capital (120,000xP10)
Ordinary Share Capital in Excess of Stated Value

Cash
Preference Share Capital

8 Pre-Operating Expense (1,200xP120)

Preference Share Capital (1,200xP100)
Preference Share Premium (1,200xP20)

12 Ordinary Share Capital Subscription Receivable (70,000xP15)

Ordinary Share Capital Subscribed (70,000xP10)
Ordinary Share Capital in Excess of Stated Value (70,000xP5)

12 Cash
Ordinary Share Capital Subscription Receivable (1,050,000x.60)

Jul-21 Merchandise Inventory

Land
Building
Equipment
Ordinary Share Capital (19,000xP10)
Ordinary Share Capital in Excess of Stated Value (293k-190k)

Jul-30 Cash
Ordinary Share Capital Subscription Receivable (1,050,000x.40)
 30 Ordinary Share Capital Subscribed (70,000xP10)
Ordinary Share Capital

30 Cash
Ordinary Share Capital Subscribed (70,000xP10)
Ordinary Share Capital in Excess of Stated Value

EXERCISE 3-7

Sept-01 Ordinary Share Capital Subscription Receivable (120,000xP25)

Ordinary Share Capital Subscribed (120,000xP20)
Ordinary Share Premium (120,000xP5)

1 Cash
Ordinary Share Capital Subscription Receivable (3,000,000x.40)

8 Land
Ordinary Share Capital (23,000xP20)
Ordinary Share Premium

10 Cash
Ordinary Share Capital Subscription Receivable (3,000,000x.60) / 3

20 Cash
Ordinary Share Capital Subscription Receivable (3,000,000x.60) / 3

30 Cash
Ordinary Share Capital Subscription Receivable (3,000,000x.60) / 3

30 Ordinary Share Capital Subscribed (120,000xP20)

Ordinary Share Capital

30 Cash
Ordinary Share Capital Subscribed (120,000xP20)
Ordinary Share Premium (120,000xP5)

EXERCISE 3-8

A) Ordinary Share Capital Subscription Receivable (123,000xP25)

Ordinary Share Capital Subscribed (123,000xP20)
 Ordinary Share Capital in Excess of Stated Value (123,000xP5)

Cash
Ordinary Share Capital Subscription Receivable (3,075,000x.60)

B) Cash (1,250,000x.40)
Ordinary Share Capital Subscription Receivable (50,000xP25 x.40)

Cash
Ordinary Share Capital Subscription Receivable (50,000xP20)-SV

C) Cash (1,500,000x.40)
Ordinary Share Capital Subscription Receivable (60,000xP25 x.40)

Cash
Ordinary Share Capital Subscription Receivable (60,000xP20)-SV

D) Receivable from Highest Bidder (375,000X.40)

Ordinary Share Capital Subscription Receivable (15,000xP25X.40)

E) Receivable from Highest Bidder

Cash

F) Cash
Receivable from Highest Bidder (150k + 45k)

Ordinary Share Capital Subscribed (15,000xP20)

Ordinary Share Capital
th a par value of P20.

6,000,000.00
4,000,000.00
2,000,000.00

135,000.00
100,000.00
35,000.00

377,000.00
290,000.00
87,000.00

10,000,000.00
10,000,000.00

6,000,000.00
4,000,000.00
2,000,000.00

135,000.00
100,000.00
35,000.00

377,000.00
290,000.00
87,000.00

ar value of P40.

4,400,000.00
4,400,000.00
 8,800,000.00

ate value of P15.

4,400,000.00
3,300,000.00
1,100,000.00

nary Share Capital

4,400,000.00
4,400,000.00

are capital with a state value of P20.

3,050,000.00
3,050,000.00

150,000.00
57,500.00
92,500.00

48,000.00
2,000.00
50,000.00

250,000.00
250,000.00

1,100,000.00
150,000.00
1,250,000.00

900,000.00
600,000.00
300,000.00
 540,000.00
540,000.00

360,000.00
360,000.00

600,000.00
600,000.00

900,000.00
600,000.00
300,000.00

1,440,000.00
1,200,000.00
240,000.00

1,230,000.00
1,230,000.00

144,000.00
120,000.00
24,000.00

1,050,000.00
700,000.00
350,000.00

630,000.00
630,000.00

12,000.00
150,000.00
110,000.00
21,000.00
190,000.00
103,000.00

420,000.00
420,000.00
 700,000.00
700,000.00

1,050,000.00
700,000.00
350,000.00

3,000,000.00
2,400,000.00
600,000.00

1,200,000.00
1,200,000.00

750,000.00
460,000.00
290,000.00

600,000.00
600,000.00

600,000.00
600,000.00

600,000.00
600,000.00

2,400,000.00
2,400,000.00

3,000,000.00
2,400,000.00
600,000.00

3,075,000.00
2,460,000.00
 615,000.00

1,845,000.00
1,845,000.00
500,000.00
500,000.00

1,000,000.00
1,000,000.00

600,000.00
600,000.00

1,200,000.00
1,200,000.00

150,000.00
150,000.00

45,000.00
45,000.00

195,000.00
195,000.00

300,000.00
300,000.00