Financial Accounting and ReportingTopic: Issuance of Share Capital Issuance of Share Capital1. ABC Corporation's articles authorized the issuance of 100,000 ordinary shares. ABC sold thefollowing ordinary shares during 2020.Feb 12 – Sold 1,000 shares for P100,000Jul 10 – Sold 5,000 shares for P630,000Nov 5 – Sold 7,500 shares for P1,050,000Required: Prepare the journal entries to record each issuance, assuming:a. Ordinary shares has a P100 par valueb. Ordinary shares has a P10 stated valuec. Ordinary shares has no par or stated value

Ordinary shares provide share in the ownership of the company The profit comes through capital…

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ng and Reporting Topic: Issuance of Share Capital

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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Question

Financial Accounting and Reporting

Topic: Issuance of Share Capital

Issuance of Share Capital
1. ABC Corporation's articles authorized the issuance of 100,000 ordinary shares. ABC sold the
following ordinary shares during 2020.
Feb 12 – Sold 1,000 shares for P100,000
Jul 10 – Sold 5,000 shares for P630,000
Nov 5 – Sold 7,500 shares for P1,050,000
Required: Prepare the journal entries to record each issuance, assuming:
a. Ordinary shares has a P100 par value
b. Ordinary shares has a P10 stated value
c. Ordinary shares has no par or stated value

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

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