DATE DESCRIPTION PR DEBIT CREDIT

2018
1 Authorized to issue 100,000 ordinary shares at P50 par value,
Aug.
P5,000,000 and 50,000 8% preference shares at P100 par value
at P100 par value, P5,000,000

Subscription Receivable-Ordinary Share 1 500 000

Subscribed Ordinary Share 1 500 000
To record subscription 30,000 ordinary shares at P50 par value

Cash 500 000

Subscription Receivable-Ordinary Share 500 000
To record down payment of subscriber

5 Subscription Receivable-Preference Share 2 000 000

Subscribed Preference Share 2 000 000
To record subscription 20,000 preference shares at
P100 par value

Cash 1 000 000

Subscription Receivable-Preference Share 1 000 000
To record down payment of subscriber

10 Cash 1 100 000

Subscribed Ordinary Shares 1 000 000
Share Premium-Ordinary 100 000
Issued 20,000 ordinary shares for cash

12 Equipment 560 000

Preference Share Capital 500 000
Share Premium-Preference 60 000
Received equipment in exchange for 5,000 preference shares

30 Cash 1 000 000

Subscription Receivable-Preference Share 1 000 000
To record collection of full payment of the subscription balance

Subscribed Preference Share 2 000 000

Preference Share Capital 2 000 000
Issued stock certificate for 20,000 stocks

Sep. 1 Cash 500 000

Subscription Receivable-Ordinary Share 500 000
To record payment of subscribers
30 Cash 400 000
Subscription Receivable-Ordinary Share 400 000
To record collection of full payment of subscribers

Subscribed Ordinary Shares 1 400 000

Ordinary Shares Capital 1 400 000
Issued stock certificate for 20,000 stocks

SHAREHOLDERS’ EQUITY

Paid In Capital:
Authorized 50,000 8% preference
shares at P100 par value
Issued shares 25,000 P 2,500,000

Authorized to issue 100,000 ordinary

shares at P50 par value
Issued shares 48,000 2,400,000
Subscribed Ordinary Shares 2,000 100,000
Total 5,000,000

Additional Paid in Capital

Share Premium-Preference 60,000
Share Premium-Ordinary 100,000
Total Paid in Capital P 5,160,000
DATE DESCRIPTION PR DEBIT CREDIT
2018
May 1 Authorized to issue 100,000, 12% cumulative preference shares
.
at P100 par value and 200,000 common shares par P50 par value

Subscription Receivable- Preference Share 3 000 000

Subscribed Preference Share 3 000 000
To record subscription 30,000 preference shares P100 par value

Cash 750 000

Subscription Receivable- Preference Share 750 000
To record down payment of incorporators

Subscription Receivable- Ordinary Share 3 000 000

Subscribed Ordinary Share 3 000 000
To record subscription 60,000 common shares at P50 par value

Cash 750 000

Subscription Receivable- Ordinary Share 750 000
To record down payment of incorporators

Jun. 5 Organization Expense 120 000

Cash 120 000
Record payment for organization expense

15 Subscription Receivable- Preference Share 550 000

Subscribed Preference Share 500 000
Share Premium- Preference 50 000
To record subscription 5,000 preference shares P100 par value

Cash 137 500

Subscription Receivable- Preference Share 137 500
To record down payment of subscribers

17 Subscription Receivable- Ordinary Share 1 560 000

Subscribed Ordinary Share 1 500 000
Share Premium- Ordinary 60 000
To record subscription 30,000 common shares at P50 par value

Cash 390 000

Subscription Receivable- Ordinary Share 390 000
To record down payment of subscribers
 30 Cash 1 125 000
Subscription Receivable-Preference Share 1 125 000
To record 1st installment payment of May 1st incorporators

Cash 1 125 000

Subscription Receivable- Ordinary Share
To record 1st installment payment of May 1st incorporators 1 125 000

Jul. 1 Cash 1 170 000

Subscription Receivable- Ordinary Share 1 170 000
To record collection of full payment of the subscription
From June 17

Subscribed Ordinary Shares 1 500 000

Ordinary Shares Capital 1 500 000
Issued stock certificate for 30,000 stocks

15 Cash 137 500

Subscription Receivable- Preference Share 137 500
To record 25% payment from June 15 subscribers

18 Land 75 000
Ordinary Share Capital 70 000
Share Premium- Ordinary 5 000
Received land in exchange for 1,400 ordinary shares

20 Cash 375 000

Subscription Receivable- Preference Share 375 000
To record full collection of payment from two incorporators

Cash 375 000

Subscription Receivable- Ordinary Share 375 000
To record full collection of payment from two incorporators

Subscribed Preference Share 1 000 000

Preference Shares Capital 1 000 000
Issued stock certificate for 10,000 stocks

Subscribed Ordinary Share 1 000 000

Ordinary Share Capital 1 000 000
Issued stock certificate for 20,000 stocks

30 Cash 750 000

Subscription Receivable- Preference Share 750 000
 To record full collection of payment from other incorporators

Cash 750 000

Subscription Receivable- Ordinary Share 750 000
To record full collection of payment from other incorporators

Subscribed Preference Share 2 000 000

Preference Shares Capital 2 000 000
Issued stock certificate for 20,000 stocks

Subscribed Ordinary Share 2 000 000

Ordinary Share Capital 2 000 000
Issued stock certificate for 40,000 stocks

Aug. 31 Income Summary 105 000

Retained Earnings 105 000
To record credit balance in income summary

Date Preference Subscribed Preference Ordinary Subscribed Ordinary Retained

Share Preference Share Share Ordinary Share Earnings
Share Premium Capital Share Premium
5/1 3,000,000 3,000,000

6/5 (120,000)

6/15 500,000 50,000

6/17 1,500,000 60,000

7/1 1,500,000 (1,500,000)

7/18 70,000 5,000

7/20 1,000,00 (1,000,000) 1,000,000 (1,000,000)

0
7/30 2,000,00 (2,000,000) 2,000,000 (2,000,000)
0
8/31 105,000

TOTAL 3,000,000 500,000 50,000 4,570,000 0 65,000 (15,000)

 Rose de Lima Corporation
Statement of financial position
July 31,2018

ASSETS

Current Assets
Cash P 7,715,000
Subscription Receivable – Preference 275,000
Subscription Receivable – Ordinary 0
Total 7,990,000
Non-Current Assets:
Land 75,000
Total Assets P 8,065,000

SHAREHOLDERS’ EQUITY

Paid In Capital:
Authorized 100,000 12% cumulative
preference shares at P100 par value
Issued shares 30,000 P 3,000,000
Subscribed Preference Share 500,000

Authorized to issue 200,000 ordinary

shares at P50 par value
Issued shares 91,400 4,570,000
 Subscribed Ordinary Shares 2,000 0
Total 8,070,000

Additional Paid in Capital

Share Premium-Preference 50,000
Share Premium-Ordinary 65,000
Retained Earnings (120,000)
Total Paid in Capital P 8,065,000

DATE DESCRIPTION PR DEBIT CREDIT

201
9 5 Unissued Preference Share 2 000 000
Jan
Authorized Preference Share 2 000 000
To record the authorization to issue 18% cumulative 20,000
preference shares, P100 par

Unissued Ordinary Share 2 500 000

Authorized Ordinary Share 2 500 000
To record the authorization to issue 50,000 ordinary shares,
P50 stated value

Subscription Receivable- Ordinary Share 500 000

Subscribed Ordinary Share 500 000
To record subscription 10,000 shares, stated value P50

Cash 125 000

Subscription Receivable- Ordinary Share 125 000
To record down payment of organizers

Subscription Receivable- Preference Share 500 000

Subscribed Preference Share 500 000
To record subscription 5,000 stocks at par value P100

Cash 250 000

Subscription Receivable- Preference Share 250 000
To record down payment of organizers
 30 Cash 78 750
Unissued Preference Share 75 000
Share Premium- Preference 3 750
Issued 750 preference shares for cash

Feb 21 Land 110 000

Unissued Preference Share 110 000
Issued 1100 stocks in exchange for land

25 Organization Expense 75 000

Cash 75 000
To record payment of legal and promotion costs

28 Cash 250 000

Subscription Receivable- Ordinary Share 250 000
To record 50% payment of organizers

Mar 1 Subscription Receivable- Ordinary Share 124 000

Subscribed Ordinary Share 100 000
Share Premium- Ordinary 24 000
To record subscription 20,000 shares, stated value P50

Cash 31 000
Subscription Receivable- Ordinary Share 31 000
To record 25% down payment of subscribers

10 Cash 70 400
Subscription Receivable- Ordinary Share 70 400
To record 1,200 shares payment of subscribers

Subscribed Ordinary Share 60 000

Unissued Ordinary Share 60 000
Issued stock certificate for 1,200 stocks, stated value P50

18 Cash 250 000

Subscription Receivable- Preference Share 250 000
To record full collection of payment from subscribers

Subscribed Preference Share 500 000

Unissued Preference Share 500 000
Issued stock certificate for 5,000 stocks at par value P100

31 Income Summary 85 000

Retained Earnings 85 000
To record credit balance of income summary
Date Preference Subscribed Preference Ordinary Subscribed Ordinary Retained
Share Preference Share Share Ordinary Share Earnings
(Issued) Share Premium (Issued) Share Premium
1/5 500,000 500,000

1/30 75,000 3,750

2/21 110 000

2/25 (75,000)

3/1 100,000 24,000

3/10 60,000 (60,000)

3/18 500,000 (500,000)

3/31 85,000

TOTAL 685,000 0 3,750 60,000 540,000 24,000 10,000

SHAREHOLDERS’ EQUITY

Paid In Capital:
Authorized 18% cumulative 20,000
preference shares, P100 par P 2,000,000
Less Unissued Preference Share 1,315,000
Preference shares 6,850 685,000

Authorized to issue 50,000 ordinary

shares at P50 stated value 2,500,000
Less Unissued Ordinary Share 2,440,000
Ordinary Share 1,200 60,000
Subscribed Ordinary Shares 10,800 540,000
Total 1,285,000
Additional Paid in Capital
Share Premium-Preference 3,750
Share Premium-Ordinary 24,000
Retained Earnings 10,000
Total Paid in Capital P 1,332,750