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[Sej]

Par Value of shares issued – P 3,000,000
Fair market value of land received by the corporation in payment – P 2,750,000

a. Journal entry at the time of issue, recognizing the deficiency in the payment received for the
shares?
Journal entry for the collection on the deficiency?
b. Journal entry at the time of issue, not recognizing the deficiency in the payment received for the
shares?
Journal entry to recognize the deficiency if successfully challenged by a creditor or minority
stockholders?

 

[🤖]

a. Journal entry at the time of issue, recognizing the deficiency in the payment received for the shares:

Cash P 250,000
Land P 2,750,000
Subscription Receivable P 3,000,000

To record the issuance of shares with deficiency in payment received.

Journal entry for the collection on the deficiency:

Cash P 250,000
Subscription Receivable P 250,000

To record the collection on the deficiency.

b. Journal entry at the time of issue, not recognizing the deficiency in the payment received for the shares:

Cash P 3,000,000
Common Stock P 3,000,000

To record the issuance of shares without recognizing the deficiency in payment received.

Journal entry to recognize the deficiency if successfully challenged by a creditor or minority stockholders:

Subscription Receivable P 250,000
ρáíd-in Capital P 250,000

To recognize the deficiency in payment received, if successfully challenged by a creditor or minority stockholders. The ρáíd-in Capital account is used to record the difference between the par value and the fair market value of the shares issued.

 

[Beatriz9]

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