The following are independent transactions relating to share capital: Issued 10,000 ordinary shares of P...
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The following are independent transactions relating to share capital: • Issued 10,000 ordinary shares of P 150 par value at P 200 per share. The company incurred and paid documentary stamp tax and other SEC registration fees for new shares P 60,000 and public relations consultants' fees of P 25,000. • Issued 3,500 ordinary shares of P 200 par in exchange for a parcel of land to be used as a plant site. The ordinary share capital is actively traded on the Philippine Stock Exchange at an average price of P 560 per share. Issued 100,000, P 100 par ordinary shares for P 18,000,000. One share of P 500 par preference was issued with every 20 ordinary shares. The market price per ordinary share was P 120 and per preference share was P 800. • Subscriptions to 5,000 ordinary shares with P 100 par value are received from various subscribers along with checks amounting to 25% of the subscription price as down payment. The share capital was subscribed at P 120 per share. The balance of the subscription price is to be paid in 3 equal monthly installments. Received a parcel of land from a wealthy shareholder to be used for the construction of a new factory building. Legal fees of P 40,000 were paid. The fair market value of the land was P 5,000,000. Its cost to the shareholder was P 800,000 ten years ago. REQUIRED: a) Journal entries to record the foregoing transactions. The following are independent transactions relating to share capital: • Issued 10,000 ordinary shares of P 150 par value at P 200 per share. The company incurred and paid documentary stamp tax and other SEC registration fees for new shares P 60,000 and public relations consultants' fees of P 25,000. • Issued 3,500 ordinary shares of P 200 par in exchange for a parcel of land to be used as a plant site. The ordinary share capital is actively traded on the Philippine Stock Exchange at an average price of P 560 per share. Issued 100,000, P 100 par ordinary shares for P 18,000,000. One share of P 500 par preference was issued with every 20 ordinary shares. The market price per ordinary share was P 120 and per preference share was P 800. • Subscriptions to 5,000 ordinary shares with P 100 par value are received from various subscribers along with checks amounting to 25% of the subscription price as down payment. The share capital was subscribed at P 120 per share. The balance of the subscription price is to be paid in 3 equal monthly installments. Received a parcel of land from a wealthy shareholder to be used for the construction of a new factory building. Legal fees of P 40,000 were paid. The fair market value of the land was P 5,000,000. Its cost to the shareholder was P 800,000 ten years ago. REQUIRED: a) Journal entries to record the foregoing transactions.
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Related Book For
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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