2. The ABC Co. was organized with an authorized Php100,000 no par ordinary shares. The board of directors fixed the stated value at Php10 per share. The following transactions were completed: Jan. 2 – Sold 2,000 shares at Php11 per share. Sold 1,000 shares at Php12, collecting 50% down payment. Feb. 1 – Received subscriptions to 4,000 shares at Php12 per share and received 20% down payment. March 1 - Sold 300 shares at Php10 in cash. April 1 – Collected the balance of the subscription on January 2. April 15 – Collected the balance of the subscription of February 1. May 6 – Sold the balance of the remaining shares at Php12 per share and received 20% down payment. Required: Journal entries to record the ab
2. The ABC Co. was organized with an authorized Php100,000 no par ordinary shares. The board of directors fixed the stated value at Php10 per share. The following transactions were completed:
Jan. 2 – Sold 2,000 shares at Php11 per share.
Sold 1,000 shares at Php12, collecting 50% down payment.
Feb. 1 – Received subscriptions to 4,000 shares at Php12 per share and received 20% down payment.
March 1 - Sold 300 shares at Php10 in cash.
April 1 – Collected the balance of the subscription on January 2.
April 15 – Collected the balance of the subscription of February 1.
May 6 – Sold the balance of the remaining shares at Php12 per share and received 20% down payment.
Required:
1. Shares are recorded at issue price.
2. Shares are recorded at par value.
Step by step
Solved in 2 steps
