Tapdasan, April Mae I.

BSA - 2
Assignment
JOURNAL ENTRIES
DEBIT CREDIT
1. Cash (27,000 x P40) 1,080,000
Prefered stock (27,000 x P30) 810,000
APIC - premium on preferred stock 270,000

2. Cash (94,500 x P70) 6,615,000

Common stock (94,500 x P50) 4,275,000
APIC - premium on common stock 1,890,000

3. Preferred Stock (5,400 x P30) 162,000

APIC - premium on P5 (P1,080,000 x
5,400/135,000) 43,200
Retained earnings 37,800
Cash 243,000

4. Treasury stocks (13,500 x P80) 1,080,000

Cash 1,080,000

5. Memo - the willpower corp. split

common stock two for one

6. Cash (13,500 x P50) 675,000

Treasury stock ( P1,080,000 x 1/2) 540,000

APIC - from treasury stock transactions 135,000

7. Memo Entry
Cash (9,000 x 1/2 x P54) 243,000

APIC - Donated Capital 243,000

8. Retained Earnings 1,625,760

Cash 1,625,760
Requirement #2
1. Preference Share Capital
Preference share outstanding 4,050,000
Issued (27,000 x P30) 810,000
Total 4,860,000
-162,000
Preference share Capital 4,698,000

2. Ordinary Share Capital

Ordinary Share Outstanding 9,000,000
Issued (94,500 x P70) 4,725,000

Ordinary Share Capital 13,725,000

3. Total Share Premium

Share premium preference (1,080,000
+ 270,000) 1,350,000
Retirement of Preference Share -43,200
Share premium- Ordinary (3,240,000 +
1,890,000) 5,130,000
Share Premium-Treasury 135,000

Share Premium- Donated Capital 243,000

Total Share Premium 6,814,800

4. Un-appropriated Accumulated
Profit (Losses) 1,711,440

5. Total Stockholder's Equity

Share Capital (4,698,000 + 13,725,000) 18,423,000
Share Premium 6,814,800
Un-appropriated Accumulated Profit
(Losses) 1,711,440
Total Stockholder's Equity P26,949,240