1.) Starbright Corporation is authorized to issue 50,000 shares at P100 par value.

On July 15, the five

incorporators subscribed to 12,500 shares at par and paid 25% of the subscription
Aug. 1 Ms. Elcee subscribed to 10,000 shares at par.
2 Issued 200 shares for P20,000 cash.
14 Collected the subscription of Ms. Elcee.
22 Received a piece of land from Ms. Mariebic in exchange for 5,000 shares. Fair market value of
the land was P500,000.
31 Issued 50 shares to Ms. Jina for promotional services rendered during the formation of the
corporation.
Sept 15 Subscriptions for 1,000 shares at par were received from Ms. Akino. Received 20% down
payment; balance in four equal monthly installments starting November 1.
Oct 31 Collected one half of the balance of the incorporators' subscription.
Nov 1 Collected the first installment on September 15 subscriptions.
30 Collected the other half of the incorporators' subscription and issued the corresponding stock
certificates.
Dec 1 Collected the second installment on September 15 subscriptions.

2.) Frankie Corporation received its corporate charter on July l,2OY9. It was authorized to issue 50,000
shares at P 100 par value each. Prior to its incorporation, subscriptions at par to 2,500 shares were
received from each of its incorporators, Agatha, Prescilla, Kaye, Amiel and Jhun. Each of them paid 25%
of their subscription to comply with the requirements of the Corporation Code. During the month of July,
the following transactions took place:
July 2 Paid incorporation fees of P4,000 to the SEC.
3 Issued 2,000 shares to Dominic at P120 per share.
5 Acquired store equipment in exchange for 800 shares at par.
6 Prescilla paid her subscription in full and was issued the corresponding stock certificates
8 Aside from her pre-incorporation subscription, Agatha acquired an additional 2,000 shares.
Agatha transferred to the corporation her ownership to a pick-up truck worth P480,000 in fulI
payment of the balance of her subscription and the additional 2,000 shares.
11 Issued 100 shares to Darren for promotional services.
12 Received subscriptions to 1,500 shares at l20% of par value from David.
15 Kaye paid the balance of her subscription with merchandise of the same value and was issued
a stock certificate corresponding to the fully paid shares.
18 Collected 50% of the subscription from David.
 21 Sold to various investors 2,000 shares at P110 per share.
24 David paid the balance of his subscription and received the stock certificate corresponding to
the total number of shares subscribed and paid.
27 Issued 3,000 shares in exchange for a piece of land valued at P350,000.

Contributed capital per class of share:

Preference Share
(Authorized 400,000 shares – par value of P40 per share)
Issued 650 shares ₱26,000
Subscribed 155,000 shares ₱6,200,000
Less: Subscription Receivable – Preference shares 1,050,000 5,150,000 5,176,000
Add: Premium on Preference shares 602,400
Total contributed capital of Preference shares ₱5,778,400

Ordinary Share
(Authorized 500,000 shares – par value of P30 per share)
Issued 16,500 shares ₱495,000
Subscribed 348,000 shares ₱10,440,000
Less: Subscription Receivable – Ordinary shares 1,142,400 9,298,000 9,793,000
Add: Premium on Ordinary Shares 3,864,450
Total contributed capital of Preference shares ₱ 13,657,450

4.) Batangas Corporation was organized on March I,20Y9 with authorized share capital of 20,000 shares
comprised of 7% preference shares with a P50 par value and 30,000 ordinary shares with a P30 par value.

Mar. 1 Incorporators subscribed 25% of the authorized preference share capital and ordinary share
capital at par and paid 25% of the total subscriptions.
15 Collected from the incorporators 50% of the balance of their subscriptions.
31 Collected the remaining balance of the incorporators’ subscriptions.
Apr. 1 Subscriptions were received for 3,000 shares of ordinary share capital atP42 per share, P22 per
share down payment with the balance payable in two equal installments due on May 1 and June
1.
2 Issued 16,500 ordinary shares to Mr. Amiel in exchange for his business. Assets transferred to the
corporation were valued as follows: Buildings, P350,000; Equipment,P55,000; Merchandise, P
140,000.
29 Subscriptions were received for 12,000 shares of preference share capital at P55 per share,
P180,000 down payment with the balance payable in two equal installments due on May 1 and
June 1.
May. 1 Amounts due on this date were collected from all ordinary and preference share subscribers.
5 Issued 50 preference shares to an attorney as payment for a bill for P3,200 covering legal fees in
organizing the corporation.
12 Remaining ordinary shares were subscribed at P35 per share with a 25% down payment and the
balance in two equal installments due June 15 and July 15.
26 Issued 500 preference shares for cash at P55.
Jun. 1 Amounts due on this date were collected from ordinary and preference share subscribers.
Required: 1. Prepare journal entries to record the foregoing transactions.