1 Issued for cash 62,500 preference shares at par, and 125,000 ordinary shares fThe Integrity Corporation was incorporated on January 1, 2014 with authorized capital250,000 shares of P100 par value 10% preference share capital and 500,000 shares of PChapter 8- Organization and Formation of aCorporation314Chapter 8EXERCISESExerciseExercise 8 -1 (Issuance of Par Value Share Capital for Cash)The Secshares cshare.stated value ordinary share capital. The shares were issued during 2014 as followsInstrucof theJan.indeperP25.May 1 Issued for cash 25,000 preference shares for P3,000,000.1.2.3.Dec. 1 Issued for cash 25,000 ordinary shares for P600,000.ExerciConsicInstructions: Prepare the journal entries to record the foregoing transactions, includingauthorized share capital, assuming the use of:a. memorandum entry method.b. journal entry methodThe Jua statecapita.

Answer - Part a. Memorandum entry method Date Particulars Debit Credit Jan 1…

Jan. 1 Issued for cash 62,500 preference shares at par, and 125,000 ordinary shares f 250,000 shares of P100 par value 10% preference share capital and 500,000 shares of a The Integrity Corporation was incorporated on January 1, 2014 with authorized capital Exercise 8 - 1 (Issuance of Par Value S stated value ordinary share capital. The shares were issued during 2014 as follows P25. May 1 Issued for cash 25,000 preference shares for P3,000,000. Dec. 1 Issued for cash 25,000 ordinary shares for P600,000. Instructions: Prepare the journal entries to record the foregoing transactions, includine authorized share capital, assuming the use of: a. memorandum entry method. b. journal entry method

Jan. 1 Issued for cash 62,500 preference shares at par, and 125,000 ordinary shares f 250,000 shares of P100 par value 10% preference share capital and 500,000 shares of a The Integrity Corporation was incorporated on January 1, 2014 with authorized capital Exercise 8 - 1 (Issuance of Par Value S stated value ordinary share capital. The shares were issued during 2014 as follows P25. May 1 Issued for cash 25,000 preference shares for P3,000,000. Dec. 1 Issued for cash 25,000 ordinary shares for P600,000. Instructions: Prepare the journal entries to record the foregoing transactions, includine authorized share capital, assuming the use of: a. memorandum entry method. b. journal entry method

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.1AP

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