Lagoon Company was organized at the beginning of the current year.The entity provided the following transactions affecting shareholders' equity:1. The corporation was authorized to issue 100,000 ordinary shares with par value ofP100.2. Twenty-five percent of the authorized ordinary capital was subscribed for at par value.3. Collected twenty-five percent of the subscription.4. Full collection was received on 10,000 shares originally subscribed.5. Issued the share certificates on the fully paid 10,000 shares.6. Land with fair value of P800,000 and a building thereon fairly valued at P2,500,000were acquired for 30,000 shares.7. Issued 10,000 shares for an outstanding bank loan of P1,300,000, including accruedinterest of P200,000. On this date, shares are quoted at P120 per share.8. Net income for the year amounted to P3,000,000.Required:a. Prepare journal entries using journal entry method. b. Present the shareholders' equity

Lagoon Company was organized at the beginning of the current year.The entity provided the following transactions affecting shareholders' equity:1. The corporation was authorized to issue 100,000 ordinary shares with par value ofP100.2. Twenty-five percent of the authorized ordinary capital was subscribed for at par value.3. Collected twenty-five percent of the subscription.4. Full collection was received on 10,000 shares originally subscribed.5. Issued the share certificates on the fully paid 10,000 shares.6. Land with fair value of P800,000 and a building thereon fairly valued at P2,500,000were acquired for 30,000 shares.7. Issued 10,000 shares for an outstanding bank loan of P1,300,000, including accruedinterest of P200,000. On this date, shares are quoted at P120 per share.8. Net income for the year amounted to P3,000,000.Required:a. Prepare journal entries using journal entry method. b. Present the shareholders' equity

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 6PA: EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of...

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