Professional Documents
Culture Documents
Assignment For Accounting Corp.
Assignment For Accounting Corp.
Memorandum Method
Problem 3: Journal Entries
1. Entity B was Incorporated at the start of the current period. The following were Entity B's a. Memorandum Entry
share capital transactions during the year:
b. Cash (10,000,000 x 50% x 25%) 1,250,000
a. the SEC approved entity B's authorized capitalizationof P10,000,000 divided Subscription Receivable 3,750,000
into 1,000,000 share with par value of P10 per share. Subscribed Share Capital
b. fifty percent (50%) of the authorized capitalization was subscribed at par value C. Cash 937,500
and twenty five percent (25%) of the subscription was paid on subcription date. Subscription Receivables
c. Received full payment for 250,000 subscribed shares and issued the related share Subscribed Share Capital (250,000 x 10) 2,500,000
certificates Share Capital
d. Received cash subcription for 50,000 additional shares for P15 per share
e. Subscription Receivable (100,000 x 20) 2,000,000
e. Received subscription for P100,000 additional shares for P20 per share. Subscribed Share Capital
Share Premium
f. collected the full payment on the subcription in e' above and issued the related
share certificates. f. Cash (100,000 x 20) 2,000,000
Subscription Receivable
Requirements:
Subscribed Share Capital (100,000 x 10) 1,000,000
a. Provide the Journal entries under (1.)Memorandum Method and (2) Journal Entry Method Share Capital
1,250,000
Authorized Share Cap 10,000,000 10,000,000
Unissued Share Cap. (6,000,000)
Subscribed Share Cap. 2,500,000 Share Premium
Subscription Receivable (1,875,000) 250,000
Share Premium 1,250,000 1,000,000
Total 5,875,000
1,250,000
NATIONAL COLLEGE OF BUSINESS AND ARTS
ACCOUNTING FOR BUSINESS ORGANIZATION
Chapter 15 - Accouting for Corporation
Assignment:
2. Entity A issued 3,000 shares with par value of P100 for P140 per share. Share issuance cost
amounted to P6 per share. How much is the net share premium arising from the share issuance?
Assignment:
Entity A's statement of financial position as of the beginning of the period shows the following
information:
1. Entity A reacquires 1,000 shares for P30 each. Provide the journal entries, including the related
appropriation of retained earnings.
3. Entity B reissues 500 shares for P20 each. Provide the journal entries, including the related reversal
of appropriation of retained earnings
Assignment:
1. Entity B reacquires P1,000 shares at P 11 per share and immidiately retires them. Provide
the journal Entry
Treasury shares (1,000 x 10) 10,000
Cash 10,000
2. Entity B reacquires 1,000 shares at P15 per share on January 1, 20x1 and retires them on
March 1, 20x1 provide the journal entries (you may ignore entries for the automatic appropriation
of retained earnings)
January 1, 20x1
March 1, 20x1
Assignment:
Entity B receives the following donation from a shareholders on February 14, 20x1
Cash 200,000
Share premium - Donated capital 200,000
Building 900,000
Share premium - Donated capital 900,000
MEMORANDUM ENTRY
July 5, 20x2