C6 EXERCISE 6 & 7 PAGE 178

MEMORANDUM ENTRY METHOD

Feb 01 Authorized to issue 1,000,000 shares at P10 par value

#
Subscription Receivable 3,000,000
Subscribed Share Capital
#
Cash 1,050,000
Subscription Receivable
A & B = 75,000 shs x 2 x 10 x 20% = 300,000
C & D = 75,000 shs x 2 x 10 x 50% = 750,000
Total 1,050,000
#
Feb 14 Cash 1,920,000
Share Capital
Paid in Excess of Par
#
Mar 14 Land 3,500,000
Share Capital
Paid in Excess of Par
#
Apr 28 Organization Cost 50,000
Share Capital
Paid in Excess of Par
#
Apr 30 Cash 1,200,000
Subscription Receivable
75,000 x 2 x 10 x 80%
#
Subscribed Share Capital 1,500,000
Share Capital
#
BEST SECURITIES CORP.
Shareholders' Equity Section
Paid in Capital
Authorize to issue 1,000,000 shares
Issued 634,500 shares 6,345,000
Subcribed 150,000 shares 1,500,000
Less: Subscription Receivable 750,000 750,000
Additional Paid-in Capital
Paidd in excess of par 625,000
Retained Earnings (organization cost) (50,000)
Total Shareholders' Equity 7,670,000
 JOURNAL ENTRY METHOD
Unissued Share Capital 10,000,000
Authorized Share Capital
#
Subscription Receivable 3,000,000
3,000,000 Subscribed Share Capital
#
Cash 1,050,000
1,050,000 Subscription Receivable

#
Cash 1,920,000
1,600,000 Unissued Share Capital
320,000 Paid in Excess of Par
#
Land 3,500,000
3,200,000 Unissued Share Capital
300,000 Paid in Excess of Par
#
Organization Cost 50,000
45,000 Unissued Share Capital
5,000 Paid in Excess of Par
#
Cash 1,200,000
1,200,000 Subscription Receivable
75,000 x 2 x 10 x 80%
#
Subscribed Share Capital 1,500,000
1,500,000 Unissued Share Capital
#

Paid in Capital
Authorized 1,000,000 shares at P10 par
Less: Unissued Share Capital
Issued and outstanding 634,500
Subcribed 150,000 shares 1,500,000
Less: Subscription Receivable 750,000
Additional Paid - in Capital
 Paid in excess of par
Retained Earnings (Organization cost)
Total Shareolders' Equity
10,000,000

3,000,000

1,050,000

1,600,000
320,000
`

3,200,000
300,000

45,000
5,000

1,200,000

1,500,000

10,000,000
(3,655,000)
6,345,000

750,000
 625,000
(50,000)
7,670,000
C6 EXERCISE 8 PAGE 178-179

A Authorize to issue 500,000

Issued shares: P1,200,000 /10 (120,000)
Unissued shares 380,000

B Unissued shares 380,000

Subscribed balance (100,000)
Still available for subscription 280,000

C Subscription Receivable 1,000,000

Subscribed Share Capital 1,000,000
#
Cash 500,000
Subscription Receivable 500,000
#

D Properties 1,560,000
Share Capital 1,200,000
Paid in exess of par 360,000
#
C7 EXERCISE 1 PAGE 197
Aug 1 Authorize to issue 50,000 8% Preference shares P100 par and 100,000 ordinary sha

Cash 500,000
Subcription Receivable - Ordinary 1,000,000
Subscribe Share Capital - Ordinary
30,000 x 50 = P1,500,000 x 2/3 = P1,000,000
#
Aug 5 Cash 1,000,000
Subcription Receivable - Preference 1,000,000
Subscribe Share Capital - Preference
20,000 x 100 = P2,000,000 x 50%= P1,000,000
#
Aug 10 Cash 1,100,000
Share Capital - Ordinary
Share Premium - Ordinary
P50 x 1.10 = P55 x 20,000 = P1,100,000
#
Aug 12 Equipment 560,000
Share Capital - Preference
Share Premium- Preference
P700,000 x 80% = P560,000
5,000 x P100 = P500,000
#
Aug 30 Cash 1,000,000
Subscription Receivable - Preference
#
Subscribed Share Capital - Preference 2,000,000
Share Capital - Preference
#
Sept 1 Cash 500,000
Subscription Receivable - Ordinary
P1,000,000 x 50% = P500,000
#
Sept 30 Cash 466,666
Subscription Receivable - Ordinary
P1,000,000 x 50% = 500,000
2,000 x 50 = P100,000 - 33,333 - 33,333 = 33,334
Total receivable collected 466,666
#
Subscribed Share Capital - Ordinary 1,400,000
Share Capital - Ordinary
30,000 - 2,000 = 28,000 x P50 = P1,400,000
 #
Supreme Corp.
Shareholders' Equity Section

Paid-in Capital
Preference Shares
Authorized to issue 50,000 shares, P100 par
Issued 25,000 shares
Ordinary Shares:
Authorized to issue 100,000 shares, P50 par
Issued 48,000 shares
Subscribed 2,000 shares
Additional Paid-in Capital
Share Premium- Preferred 60,000
Share Premiuml- Ordinary 100,000

Total Contributed Capital

d 100,000 ordinary shares P50 par

1,500,000

2,000,000

1,000,000
100,000

500,000
60,000

1,000,000

2,000,000

500,000

466,666

1,400,000
2,500,000

2,400,000
100,000

160,000

5,160,000
C7 EXERCISE 4 PAGE 198-199
A Oct 8 Receivable from Highest Bidder 33,334
Subscription Receivable - Ordinary
#
Receivable from Highest Bidder 5,000
Cash
#
Oct 15 NO ENTRY
#
Oct 30 Cash 38,584
Receivable from Highest Bidder
Interest Income
P33,334 x 18% x 15/360 = P250
#
Subscribe Share Capital - Ordinary 100,000
Share Capital - Ordinary
#

B Adela will receive the stock certificate for 500 shares while the remaining 1,500 shares
Two certificates will be issued
 33,334

Subscription Rec'Ble - Ordinary (2,000 shs - Rex)

5,000 Aug 1 100,000 33333 Sept 1
33333
100,000 66,666
33,334
Microsoft Office
38,334 User:
250 Unpaid subscription

100,000

e the remaining 1,500 shares will be received by Rex

crosoft Office
er:
paid subscription
C7 EXERCISE 5 PAGE 199
A Oct 8 Receivable from Highest Bidder 33,334
Subscription Receivable - Ordinary
#
Receivable from Highest Bidder 5,000
Cash
#
Oct 30 Treasury Shares - Ordinary 38,334
Receivable from Highest Bidder
#
Subscribe Share Capital - Ordinary 100,000
Share Capital - Ordinary
#
 33,334

Subscription Rec'Ble - Ordinary (2,000 shs - Rex)

5,000 Aug 1 100,000 33333 Sept 1
33333
100,000 66,666
38,334 33,334 Microsoft O
User:
Unpaid subscr
100,000
Microsoft Office
User:
Unpaid subscription
C7 EXERCISE 7 PAGE 199
A Jun 1 Treasury Shares 40,000
Cash
500 shs x P80 = P40,000
#
Jun 12 Cash 3,750
Retained Earnings 250
Treasury Shares
50 shs x P75 = P3,750
50 shs x P80 = P4000
#
Jun 15 Cash 10,000
Treasury Shares
Paid in Capital from Treasury Shares
P10,000 / 100 = P100
#
Jun 20 Cash 10,500
Paid in Capital from Treasury Shares 1,500
Treasury Shares
150 shs x P70 = P10,500
#
Jun 25 Share Capital 10,000
Share Premium 500
Treasury Shares
Paid in Capital from Stock Retirement
500 - 50 - 100 - 150 = 200
100 retired shares x P100 par = P10,000
100/10000 x P50,000 = P500
#
Jun 30 Income Summary 100,000
Retained Earning
#
Retained Earnings 8,000
Retained Earnings - Appropriation for Treasury Shares
100 TS x P80 = P8,000
#
B On June 30
Ordnary Share Capital, with P100 par
9,900 shares issued of which 100 shares are in the treasury
Share Premium
Paid in Capital from Treasury Shares
Paid in Capital from Stock Retirement
Retained Earnings
 Free 1,291,750
Appropriated for Treasury Shares 8,000
Total
Less: Treasury Shares (100 shs at cost)
Total Shareholders' Equity
 40,000

4,000

8,000
2,000

12,000

8,000
2,500

100,000

8,000

990,000
49,500
500
2,500
1,299,750
2,342,250
8,000
2,334,250
C7 EXERCISE 3 PAGE 198
Jan 5 Authorize to issue 18% Cumulative Preference Shares, P100 par and 50,000 Ordinary
#
Subscription Receivable - Preference
Subscription Receivable - Ordinary
Subscribed Share Capital - Preference
Subscribed Share Capital - Ordinary
5,000 shs x 100 = P500,000
10,000 shs x 50 = 500,000
#
Cash
Subscription Receivable - Preference
Subscribed Share Capital - Ordinary
P500,000 x 50% = P250,000
P500,000 x 25% = P125,000
#
Jan 30 Cash
Share Capital - Preference
Share Premium - Preference
750 shs x 105 = P78,750
750 shs x 100 = P75,000
#
Feb 21 Land
Share Capital - Preference
P50,000 x 220% = P110,000
P110,000 / P100 = 1,100 shares
#
Feb 25 Organization Expense
Cash
#
Feb 28 Cash
Subscription Receivable - Ordinary
P500,000 - 125,000 = P375,000 x 50% = P187,500
#
Mar 1 Cash
Subscription Receivable - Ordinary
Subscribed Share Capital - Ordinary
2,000 shs x P62 = P124,000 x 25% = P31,000
P124,000 - 31,000 = P93,000
#
Mar 10 Cash
Subscription Receivable - Ordinary
1,200 shs x P62 = P74,400 x 75% = P55,800
 800 shs x P62 = P49,600 x 75% = P37,200
P70,400 - 55,800 = P14,600 - Partial payment of 800 shs subscribers
P37,200 - 14,600 = P22,600 - unpaid subscription of 800 shs subscribers
#
Subscribed Share Capital - Ordinary
Share Capital - Ordinary
1,200 shs x P50 = P60,000
#
Mar 18 Cash
Subscription Receivable - Preference
#
Subscription Receivable - Preference
Share Capital - Preference
#
Note: Disregard the other requirements
P100 par and 50,000 Ordinary shares, no par but with a P50 stated value

500,000
500,000
500,000 B
500,000 Preference
Issued Subscribed
Jan 30 75000
110000
375,000 500000
250,000 685000
125,000 100
6850

C
78,750 Paid in Capital:
75,000 Preference
3,750 Issued 6850 shs
Ordinary
Issued 1200 shs
Subcribed 1800 shs
110,000 Additional Paid in Capital
110,000 Share Premium - Preference
Total Cont Cap

Retained Earnings
75,000
75,000 Stockholders' Equity

187,500
187,500

31,000
93,000
124,000

70,400
70,400
 of 800 shs subscribers
tion of 800 shs subscribers

60,000
60,000

250,000
250,000

500,000
500,000
 Ordinary
Issued Subscribed
74400 500000
49600

74400 549600
62
1200 10000 @P50
800 @62

685,000

74,400
549,600

3,750
1,312,750

10,000

1,322,750