Professional Documents
Culture Documents
COLLEGE OF ACCOUNTANCY
BANILAD, CEBU CITY
Accounting 111B (Journalizing)
Name: Vargas, Harvey C. Course & Yr. BSBA-1C Schedule: Saturday Score:
I – Journalizing.
A. Khyle Lorenz Incorporated was authorized by its charter to issue 1,000 shares of ordinary share at P200 par value
per share. To comply with SEC requirements the following shares were subscribed and 25% of which are paid up on
December 1, 2012.
Subscribed and
Paid-up Shares Amount
Dec. 1 – Paid incorporation fee, attorney’s fee and promotion expenses, P14,000.
3 – Received subscription of 30 ordinary shares at P220 per share from Severo Santos with 50% down payment.
5 – Issued 50 ordinary shares for cash at P210 per share to Leonora Caminade.
8 – Collected in full the subscription balance of Severo Santos.
14 – Received subscription of 60 ordinary shares at P204 per shares from Florencio Ibanez, Jr.
19 – Received additional subscription from Norberto Bersal for 40 ordinary shares at par value after paying his
original subscription balance.
21 – Received additional subscription from Adelaido Dalocanog for 60 ordinary shares at par value.
25 – Received subscription of 100 ordinary shares from Jocelyn Te at par value.
28 – Issued 100 ordinary shares for cash to Richard Baligala at P202 per share.
30 – Received subscription of 40 ordinary shares from Jocelyn Joson at par value with 30% down payment.
Required: Record the above transactions including authorization and 25% compliance of corporate requirements under
Memorandum Entry Method.
B. On March 2, 2013, Khalyl Dionne Marketing Corporation was authorized to issue 2,000 ordinary shares with a par
value of P2,000 per share.
2013 March
3 – Received subscriptions from the following incorporators as well as the 25% paid-up requirement:
5 – Tano and Santos paid their subscriptions balances in full and share certificates were issued to them.
6 – Received subscription of 30 shares from Alfredo Yao at par value and collected 20% of his subscription.
15 – After all lawful calls and notice, Alfredo Yao defaulted and all his subscribed shares were declared delinquent and
were advertised for public auction.
16 – Advertising expense paid by the corporation amounted to P10,000.
20 – At the public auction, Conrado Baugbog was the highest bidder for 25 ordinary shares, he pays the balance of the
subscription plus advertising cost.
21 – The share certificates were issued.
Required: Entries in the book of the corporation from the authorization up to the defaulting subscriber using
Memorandum Entry Method.
ANSWERS:
A.
Dec 1.
Authorized to issue 1,000 ordinary shares with P200 per value
Cash 12,500
Subscription Receivable 37,500
Subscribed Ordinary Share Capital 50,000
#
Dec. 30
Cash 2,400
Subscription Receivable 5,600
Subscribed Ordinary share Capital 8,000
#
B.
March 2
Authorized to issue 2,000 ordinary shares with a par value of P2,000 per share
March 3
Cash 250,000
Subscription Receivable 750,000
Subscribed Ordinary Share Capital 1,000,000
#
March 5
Subscribed Ordinary Share Capital 600,000
Cash 450,00
Subscribed Ordinary Share Capital 600,000
Subscription receivable 450,000
#
March 6
Cash 12,000
Subscription receivable 48,000
Subscribed Ordinary Share Capital 60,000
#
March 15
No entry
March 16
Receivable from Highest Bidder 10,000
Cash 10,00
#
March 20
Cash 58,000
Subscriptions Receivable 48,000
Receivable from Highest Bidder 10,000
#
March 21
Subscribed Ordinary Share Capital 60,000
Share Capital 60,000