Montana, Inc. had the following transactions:

Jan. 5 – The corporation was authorized to issue, 1,000 preference shares with par value of P 120 and 5,000 ordinary shares having a par value of P 100 per share. 25% of each class of stocks was subscribed by incorporators and 25% of the subscriptions were paid. 28 – Sold for cash 100 preference shares at par value and 50 ordinary shares at P 102 per share.

Feb. 10 – Subscriptions for 200 preference shares at P 125/share and 300 ordinary shares at par value were accepted with all the subscribers making a down payment of 50% of the total subscription price. 15 – Received subscriptions for 300 preference shares at P122 and 800 ordinary shares at P 105 per share.

Mar. 9 – All the subscriptions on Feb. 15 were collected in full and the corresponding stock certificates were issued.

10 – Legal expenses incurred in relation to the formation of the corporation, P 6,800. The corporation issued 50 ordinary shares in payment thereof.

May 1 – All the remaining unsubscribed ordinary shares were issued in payment for a machinery with a market value of P 270,000. On this date, the aggregate market value of the remaining ordinary shares was P 275,000.

REQUIRED: 

Record the above transactions (compound entries for each date) using the memo entry method.

Answer rating: 100% (QA)

Date Accounts and Explanation Debit Credit Jan 5 The company authorizes 1000 preference shares with a par value of P120 and 5000 ordinary shares with ... View the full answer