Goodwill Corporation was authorized to issue 60,000, P100 par value ordinary share capital on November 3, 2021.

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Question:

Goodwill Corporation was authorized to issue 60,000, P100 par value ordinary share capital on November 3, 2021. The following are share capital transactions completed during the month of November:

Nov. 4 Issued 9,000 shares to David at par.

7 Received subscription from Ramos for 5,500 shares at P120 per share.

11 Received subscription from Vargas for 6,000 shares at P125 per share. 25% down the payment was collected.

15 Collected in full the subscription of Ramos and share certificate was correspondingly issued.

21 Issued 1.000 shares in exchange for machinery with an equivalent cash price of P125,000.

22 Received full payment from Vargas.

24 Received a statement of account for the services rendered by Delgado, for drafting and filing the Articles of Incorporation and the corporate by-laws. The bill is for P60,000 which is settled by issuing 500 ordinary shares.

30 The remaining shares were subscribed by Bautista at P130 per share. The corporation collected 40% of the subscription price, the balance is payable on or before January 31, 2022.

Required:

(a) Journalize the foregoing transactions using the memorandum entry method

(b) Prepare the contributed capital section of the statement of financial position at December 31, 2021, assuming that there were no other transactions that occurred during December relating to share capital.