PROBLEM 1: Mr. Queen Company is authorized to issue 80,000 ordinary shares. During thecurrent year, the company issued 25,000 shares.REQUIRED:Prepare the required entry to record the issuance of the ordinary shares under each of thefollowing assumptions:The shares are no-par but have a stated value of P10. The total issue price was P850,000.The shares are no-par and have no stated value. They were issued to a lawyer in exchangefor services rendered in connection with the organization of the corporation. The lawyerwould normally charge P70,000 for these services. There is no reasonable way to determine1.2.the fair market value of the stock.

Journal entries refers to the official book of a company which is used to record the day to day…

REQUIRED: Prepare the required entry to record the issuance of the ordinary shares under each of the following assumptions: 1. The shares are no-par but have a stated value of P10. The total issue price was P850,000. 2. The shares are no-par and have no stated value. They were issued to a lawyer in exchange for services rendered in connection with the organization of the corporation. The lawyer would normally charge P70,000 for these services. There is no reasonable way to determine the fair market value of the stock.

REQUIRED: Prepare the required entry to record the issuance of the ordinary shares under each of the following assumptions: 1. The shares are no-par but have a stated value of P10. The total issue price was P850,000. 2. The shares are no-par and have no stated value. They were issued to a lawyer in exchange for services rendered in connection with the organization of the corporation. The lawyer would normally charge P70,000 for these services. There is no reasonable way to determine the fair market value of the stock.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 8PA: Aggregate Mining Corporation was incorporated five years ago. It is authorized to issue 500,000...

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Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.
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