Sir Win – Accounting Lectures

Jokes Tagalog
Stories Legit Professor
Life Lessons

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Lecture 06: Ordinary and Preference Shares
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Allodra Corporation was organized on September 24, 2020. The

corporation was authorized to issue 10,000 shares of 10% preference
shares, P100 par value, and 100,000 shares of ordinary shares, P40 par
value. Record in a general journal the following transactions
completed during the firm’s first year of operations:

Sept. 24 Sold 40,000 shares of ordinary shares at par for

cash.
27 Issued 1,000 shares of ordinary share to lawyer in
exchange for legal services pertaining to
incorporation costing 50,000.
Oct. 7 Sold 5,000 shares of preference share at P110 for cash.
12 Issued 30,000 shares of ordinary shares in
exchange for a building with a fair market value
of P1,850,000.

Journalized the above transactions.