Acer Inc. organized on June 1,2009, was authorized to issue shares as follows: 9%, 800,000, P100 par, convertible preference shares2,500,000, P2.50 par value, ordinary sharesDuring the remainder of the fiscal year ended May 31,2010, the following transactions were completed in the order given:300,000 preference shares were subscribed for at P105, and 900,000 ordinary shares were subscribed for at P26. Both subscriptions were payable 30% upon subscription, the balance in one payment.The second subscription payment was received, except one subscriber for 60,000 ordinary shares defaulted on payment. The full amount paid by this subscriber was returned, and all of the fully paid shares was issued.150,000 ordinary shares were reacquired by purchase at P28.Each preference share was converted into four ordinary shares.The treasury shares were exchanged for machinery with a fair value market value of P4,300,000.There was a 2 for 1 split and the par value of the new ordinary shares is P1.25.Profit was P830,000.What are the journal entries of the above transactions?

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Intermediate Accounting: Reporting And Analysis

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ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

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Acer Inc. organized on June 1,2009, was authorized to issue shares as follows:

9%, 800,000, P100 par, convertible preference shares
2,500,000, P2.50 par value, ordinary shares

During the remainder of the fiscal year ended May 31,2010, the following transactions were completed in the order given:

300,000 preference shares were subscribed for at P105, and 900,000 ordinary shares were subscribed for at P26. Both subscriptions were payable 30% upon subscription, the balance in one payment.
The second subscription payment was received, except one subscriber for 60,000 ordinary shares defaulted on payment. The full amount paid by this subscriber was returned, and all of the fully paid shares was issued.
150,000 ordinary shares were reacquired by purchase at P28.
Each preference share was converted into four ordinary shares.
The treasury shares were exchanged for machinery with a fair value market value of P4,300,000.
There was a 2 for 1 split and the par value of the new ordinary shares is P1.25.
Profit was P830,000.

What are the journal entries of the above transactions?

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