Shares Issuance for Cash 10 pts

Roa Corporation's articles authorized the issuance of 100,000 ordinary shares. Roa
The ordinary shares has a Php 100 par
sold the following ordinary shares during 2020.
12-Feb
Feb. 12 Sold 1,000 shares for P100,000.
Jul. 10 Sold 5,000 shares for P630,000.
Nov. 5 Sold 7,500 shares for P1,050,000.
10-Jul
Required:
Prepare journal entries to record each issuance, assuming that:
1. the ordinary shares has a P100 par value.
2. the ordinary shares has a P10 stated value. 5-Nov
3. the ordinary shares has no-par or stated value.

The ordinary shares has a Php 10 state

12-Feb

10-Jul

5-Nov

The ordinary shares has no - par state

12-Feb

10-Jul

5-Nov
he ordinary shares has a Php 100 par value

Cash ₱ 100,000.00
Ordinary Share Capital ₱ 100,000.00
(1,000 shares x 100 per value)

Cash 630,000.00
Ordinary Share Capital 630,000.00
(5,000 x 100)

Cash 1,050,000.00
Ordinary Share Capital (7,500 x 100) 750,000.00
Share Premium 300,000.00

he ordinary shares has a Php 10 stated value

Cash 100,000.00
Ordinary Shares Capital (1,000 x 10) 10,000.00
Share premium/ paid-incapital excess of par/stated value 90,000.00

Cash 630,000.00
Ordinary Share Capital (5,000 x 10) 50,000.00
Share Premium 580,000.00

Cash 1,050,000.00
Ordinary shares Capital (7,500 x 10) 75,000.00
Share Premium 975,000.00

he ordinary shares has no - par stated value

Cash 100,000.00
Ordinary Share Capital 100,000.00

Cash 630,000.00
Ordinary Share Capital 630,000.00

Cash ₱ 1,050,000.00
Ordinary Share Capital ₱ 1,050,000.00
Shares Issuance for Cash 4 pts

Malaya Tours, Inc., is authorized to issue 220,000 of no-par ordinary shares, P15 statued value. Journalize
the following transactions:

23-May Sold 4,000 shares or ordinary shares at P18 per share for cash.
19-Jun Sold 12,500 shares or ordinary shares at P17 per share for cash.

Journal Entries

23-May Cash
Ordinary Share (4,000 x 15)
Share Premium (4,000 x 2)

Cash
19-Jun Ordinary share (12500 x 15)
Share Premium (12500 x 2)
₱ 7,200.00
₱ 6,000.00
12,000.00

₱ 212,500.00
187,500.00
₱ 25,000.00
Shares Issuance for Cash 6 pts

Fernando Corporation is authorized to issue 400,000 shares of P85 par value ordinary shares. Journalize the following
transactions:

Feb. 10 Sold 75,000 shares of ordinary shares at P86 per share; received cash.
Feb. 27
Issued 21,500 shares of ordinary shares in exchange for land with a fair market value of
P920,000 and a building with a fair market value of P1,087,500.
Mar. 3 Sold 28,000 shares or ordinary shares at P86.50 per share; received cash.

Journal Entries
10-Feb Cash
Ordinary share (75000x 85)
Share Premium

27-Feb Land
Building
Ordinary Share (21500x85)
Share Premium

3-Mar Cash
Ordinary Share (28000x85)
Share Premium
₱ 6,450,000.00
₱ 6,375,000.00
75,000.00

920,000.00
1,087,000.00
1,827,500.00
180,000.00

₱ 2,422,000.00
2,380,000.00
₱ 42,000.00
Issuance of Ordinary Shares and Prepference Shares 10 pts

On July 2, 2010, Victorino Corporation issued for cash 12,000 shares of non-par ordinary
shares with a stated value of P13 per share at P17. on July 17, it issued for cash 800 shares of
P110-par 10% preference shares at P112.

Required:
1. Prepare the journal entries for July 2 and July 17.
2. What is the total amount invested by all shareholders as of July 17?

Journal entries
2-Jul Cash ₱ 204,000.00
Ordinary Share
Share Premium-OS

17-Jul Cash ₱ 89,600.00

Preference Share
Share Premium - PS

Total Amount Invested

Ordinary Shares
Preference Shares
Total ammounted Invested
₱ 156,000.00
48,000.00

88,000.00
1,600.00

204,000.00
89,600.00
₱ 293,600.00
Issuance of Ordinary Shares and Prepference Shares 10 pts

Calamba Corporation was organized on April 8,2010. The corporation was authorized to issue 9,000
shares of 9% cumulative preference shares, P100 par value, and 90,000 shares of ordinary shares, P35
par value. Record in a general journal the following transactions completed during the firms's first year
of operations:

Apr. 8 Sold 32,000 shares of ordinary shares at par for cash

Apr. 8
Issued 900 shares of ordinary shares to a lawyer in exchange for legal
services pertaining to incorporation. The stock is selling at par.
7-May Sold 5,000 shares of preferred stock at P109; received cash.
Aug. 12 Issued 30,000 shares of ordinary shares in exchange for land with a
fair market value of P1,050,000.

Journal Entries
8-Apr Cash
Ordinary Share

8-Apr Organizational Expense

Ordinary Share

7-May Cash
Preference Share
Share Premium- Preference

12-Aug Land
Ordinary Share
₱ 1,120,000.00
₱ 1,120,000.00

31,500.00
31,500.00

545,000.00
500,000.00
45,000.00

₱ 1,050,000.00
₱ 1,050,000.00
Subscription of Shares 10 pts

Gabayan, Inc. has been authorized to issue 125,000 shares of P10 par ordinary shares. The
following 2020 transactions relate to the initial issuance of Gabayan share:

1-Feb

Gabayan sold subscriotions for 25,000 shares of stock. The shares

have a subscription price of P15 per share. One-third of the
subscription price was received as a down payment.
15-Feb Gabayan sold 10,000 shares for P180,000
Mar. 1
An installment amounting to one-third of the subscription price was
received.
Apr. 1 The final one-third of the subscription price was received and the
share issued.

Required:
Prepare journal entries to record the transactions.

1-Feb Subscription Recievable ₱ 375,000.00

Ordinary Share
Share Premium- Ordinary Shares

Cash 125,000.00
Subscription Recievable

15-Feb Cash 180,000.00

Ordinary Shares
Share Premium- Ordinary Shares

1-Mar Cash 125,000.00

Subscription receivable (375,000 c 1/3)

1-Apr Cash 125,000.00

Subscription Receivable

Subscribed Ordinary Shares ₱ 150,000.00

Ordinary Shares
₱ 250,000.00
125,000.00

125,000.00

100,000.00
80,000.00

125,000.00

125,000.00

₱ 150,000.00