Accounting for Corporation (51 points)

Mac Corporation’s capital stock transactions for the month of January are summarized below:

Jan. 1 The corporation was authorized to issue 50,000 preference shares with a par value of P150 per share
and 100,000 ordinary shares with a stated value of P100 per share. The minimum
requirements as to the subscriptions and payment were met by the five (5) incorporators.

Preference shares capital Ordinary share capital

Authorized 50,000 shares with a par Authorized 100,000 shares with a stated
Value of P150 per share value of P100 per share

Date Particulars Debit Credit

Jan. 3 Cash P6,260,000
Subscribed ordinary share capital (20,000*150) 3,000,000
Subscribed preference share capital (30,000*100) 3,000,000
Share premium (20,000*10 + (30,000*2) 260,000
Jan.5 Legal Expenses 25,000
Ordinary Share Capital 20,000
Share premium 5,000
Jan. 10 Cash 260,000
Subscription Receivable 780,000
Subscribed ordinary share capital 1,000,000
Share premium 40,000

Date Particulars Debit Credit

Jan. 12 Cash 310,000
Subscription Receivable 465,000
Subscribed preference share capital 750,000
Share premium 25,000
Jan.25 Cash 780,000
Subscription Receivable 780,000

Subscribe ordinary share capital 780,000

Ordinary share capital 780,000
Jan. 26 Land 220,000
Ordinary share capital 200,000
Share premium 20,000
Date Particulars Debit Credit
Jan. 27 Equipment 80,000
Preference share capital 75,000
Share premium 5,000
Jan.28 Loans payable 38,000
Ordinary Share Capital 30,000
Share premium 8,000
Jan. 30 Cash 465,000
Subscription Receivable 465,000

Subscribed preference share capital 465,000

Preference share capital 465,000

Memo Entry Method

 P3,740,00
Preference Share Capital, Authorized 50,000 shares
0
with a par value of P150
Subscribed Preference Share Capital 775,000
Less: Preference Subscriptions Receivable 0 775,000
Paid-in Preference Share Capital 4,515,000
Ordinary Share Capital, Authorized 100,000 shares 4,090,000
with a stated value of P100 per share
Subscribed Ordinary Share Capital 520,000
Less: Ordinary Subscriptions Receivable 0 520,000
Paid-in Ordinary Share Capital 4,360,000
Total Paid in Share Capital 8,800,000
Add: Preference Share Premium 5,000
Ordinary Share Capital in Excess of Stated Value 33,000 38,000
P8,838,00
TOTAL SHAREHOLDERS’ EQUITY
0