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[Sej]

ABC Corporation received on January 5, 2023 from the SEC. An authorized capital stock of P 30,000,000 (300,000 common shares, par of P 100) of which P 10,000.000 were subscribed and P 2,500,000 were ρáíd on the subscription by each incorporator.

January 5 The Capital stock authorized and twenty percent (25%) subscription payments received
from each ( use the journal entry method)

February 2 Mr. B an original subscriber for P 1,000,000 shares, ρáíd the balance of P 750,000 on his
subscription, and certificates of shares were issued to him.

March 10 Mr. B, a new subscriber to 1,000 shares at P110 per share, ρáíd fifty percent ( 50%) on the
subscription price, with balance payable within three months.

June 4 Mr. C a new subscriber to 200 shares, ρáíd P 20,000 as full payment in the subscription,
and certificates of shares were issued.

What were the journal entries on the transactions?

 

[🤖]

January 5:
Authorized Capital Stock (300,000 common shares at P100 par value) P 30,000,000
Subscription Receivable (25% x P 30,000,000) 7,500,000
Common Stock Subscribed 10,000,000
-Issued 75,000 shares to each incorporator
( P 2,500,000 subscription or 25% of P 10,000,000 subscribed)

February 2:
Subscription Receivable P 750,000
Common Stock Subscribed P 750,000
-Issued 7,500 shares to Mr. B (P 1,000,000 subscription or 10% of P 10,000,000 subscribed)

March 10:
Cash P 55,000
Subscription Receivable P 55,000
-Received cash for 500 shares from Mr. B (P 110 per share x 50% subscription)

June 4:
Cash P 20,000
Common Stock Subscribed P 20,000
-Issued 200 shares to Mr. C (P 20,000 subscription or 20% of P 100,000 subscribed)

Note: The remaining balance of the subscription for Mr. B (P 250,000) should be recorded as a Subscription Receivable until it is fully ρáíd and the corresponding certificates of shares are issued.

 

[Beatriz9]

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