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
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 4PB: MacKenzie Mining Corporation is authorized to issue 50,000 shares of $500 par value 7% preferred...
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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
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