Exercise 8 - 4 (Issuance of Share Capital with Stated Value in Exchange for Various Considerations) The Justice Corporation is authorized to issue 500,000 shares of ordinary share capital with a stated value of P20. The following transactions have taken place in relation to the share capital: a. Issued 125,000 shares for cash at stated value. b. Issued 25,000 shares to attorneys for services in securing corporate charter and for preliminary legal costs of organizing the corporation. The value of the services was PI50,000. c. Issued 2,000 shares to the corporate promoters. Each ordinary share is selling at P25 on this date. d. Issued 10,000 shares in exchange for land valued at P300,000. e. Issued for cash 50,000 shares at P24 per share. Instructions: Prepare the journal entries to record the preceding transactions, including authorized capital, using the memorandum entry method.

Exercise 8 - 4 (Issuance of Share Capital with Stated Value in Exchange for Various Considerations) The Justice Corporation is authorized to issue 500,000 shares of ordinary share capital with a stated value of P20. The following transactions have taken place in relation to the share capital: a. Issued 125,000 shares for cash at stated value. b. Issued 25,000 shares to attorneys for services in securing corporate charter and for preliminary legal costs of organizing the corporation. The value of the services was PI50,000. c. Issued 2,000 shares to the corporate promoters. Each ordinary share is selling at P25 on this date. d. Issued 10,000 shares in exchange for land valued at P300,000. e. Issued for cash 50,000 shares at P24 per share. Instructions: Prepare the journal entries to record the preceding transactions, including authorized capital, using the memorandum entry method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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