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Instruction: Write Your Name and Answer in A Journal/paper. Submit A MAXIMUM OF 6 PICTURES Only
Instruction: Write Your Name and Answer in A Journal/paper. Submit A MAXIMUM OF 6 PICTURES Only
Instruction: Write your name and answer in a journal/paper. Submit a MAXIMUM OF 6 PICTURES
ONLY.
Note: Follow policy on submission.
Problem 1
Magellan Centennial Hotel was organized and incorporated in January of 2020 with an authorized share
capital consisting of 6% preference shares of 50,000 and 100,000 ordinary shares at par value of P25 and
P75 respectively. The incorporators made their corresponding subscriptions in shares and payments as
follows:
REQUIRED:
1. Record the transactions using the Memorandum Method. (Write in the General Journal)
2. Record the transactions using the Journal Entry Method. (Write in the General Journal)
3. Prepare the Shareholders’ Equity section of the Statement of Financial Position for the two methods
used. (Write in a paper).