Exercise 3 8 (Subscription Default)

Patience Co. was authorized to issue 400,000 ordinary shares with a stated value of P20.

The following transactions relative in the share capital took place.

1. Received subscriptions for 123,000 shares at P25 receiving a down payment of 60%.
2. Received balance due from subscribers of 50,000 shares. Shares of the stock subsequently
3. Received balance due from subscribers of 60,000 shares. Shares of stock were issued to the subscribers.
4. The subscriber of the remaining 15,000 shares failed to pay his obligation, so his subscription was declared delinquent.
5. The subscriber of the remaining 15,000 shares failed to pay his obligation, so his subscription was declared delinquent.
6. Paid delinquency sale expenses totaling P45,000.
7. Received payment from the highest bidder and shares were issued as follows: 10,000 to the highest bidder and 5,000 to the defaulting subscriber.

Instructions: Prepare the journal entries to record the preceding transactions.