The following are capital stock transactions of the BBC Corporation. Apr. 1 - Authorized to issue 100,000 ordinary shares at P10 par value per share. 1 - Five incorporators subscribed a total of 25,000 shares at par, andpaid 25% down payment (5,000 shares each). 4 - Paid incorporation fees to the S.E.C. P 5,300. 5 - Issued 200 shares to a lawyer for his legal services. 6 - Issued 3,000 shares of stock for cash of P33,000. 9 - Received subscriptions for 2,000 shares at P11, collecting a cashdown-payment of 25%. 10 - One of the incorporators give merchandise as full payment of his subscription. 15 - Three incorporators paid cash for their subscription balance. 16 - Another 25% paid by the subscriber on the 9th. 20 - An equipment worth P30,000 plus P7,500 cash was received from the last incorporator as full payment of his subscription. 28 - 2,300 shares were issued, in exchange for a car worth P25,000. 30 - The subscriber on the 9th paid his subscription in full. Requirement: Journalize the foregoing transactions including issuance of certificates, using: 1. Memorandum method 2. Journal entry method
The following are capital stock transactions of the BBC Corporation. Apr. 1 - Authorized to issue 100,000 ordinary shares at P10 par value per share. 1 - Five incorporators subscribed a total of 25,000 shares at par, andpaid 25% down payment (5,000 shares each). 4 - Paid incorporation fees to the S.E.C. P 5,300. 5 - Issued 200 shares to a lawyer for his legal services. 6 - Issued 3,000 shares of stock for cash of P33,000. 9 - Received subscriptions for 2,000 shares at P11, collecting a cashdown-payment of 25%. 10 - One of the incorporators give merchandise as full payment of his subscription. 15 - Three incorporators paid cash for their subscription balance. 16 - Another 25% paid by the subscriber on the 9th. 20 - An equipment worth P30,000 plus P7,500 cash was received from the last incorporator as full payment of his subscription. 28 - 2,300 shares were issued, in exchange for a car worth P25,000. 30 - The subscriber on the 9th paid his subscription in full. Requirement: Journalize the foregoing transactions including issuance of certificates, using: 1. Memorandum method 2. Journal entry method
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following are capital stock transactions of the BBC Corporation.
Apr. 1 - Authorized to issue 100,000 ordinary shares at P10 par value per share.
1 - Five incorporators subscribed a total of 25,000 shares at par, andpaid 25% down payment (5,000 shares each).
4 - Paid incorporation fees to the S.E.C. P 5,300.
5 - Issued 200 shares to a lawyer for his legal services.
6 - Issued 3,000 shares of stock for cash of P33,000.
9 - Received subscriptions for 2,000 shares at P11, collecting a cashdown-payment of 25%.
10 - One of the incorporators give merchandise as full payment of his subscription.
15 - Three incorporators paid cash for their subscription balance.
16 - Another 25% paid by the subscriber on the 9th.
20 - An equipment worth P30,000 plus P7,500 cash was received from the last incorporator as full payment of his subscription.
28 - 2,300 shares were issued, in exchange for a car worth P25,000.
30 - The subscriber on the 9th paid his subscription in full.
Requirement:
Journalize the foregoing transactions including issuance of certificates, using:
1. Memorandum method
2. Journal entry method
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education