Homework answers / question archive / Problem 1: Additional Transaction   ABC Corporation was organized on May 1, 2014 with the following authorization: 100,000, 12%  preference shares with a par value of P95 per share; 200,000 common shares with no par value but with a stated value of P45 per share

Problem 1: Additional Transaction   ABC Corporation was organized on May 1, 2014 with the following authorization: 100,000, 12%  preference shares with a par value of P95 per share; 200,000 common shares with no par value but with a stated value of P45 per share

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Problem 1: Additional Transaction
 

ABC Corporation was organized on May 1, 2014 with the following authorization: 100,000, 12%  preference shares with a par value of P95 per share; 200,000 common shares with no par value but with a stated value of P45 per share. 

On this date, the four incorporators subscribed to 30,000 preference shares at the par value and 60,000 ordinary shares at stated value. A down payment of 30% was required and the balance for both shares payable in two equal installments, the first installment due on June 30 and the second installment on July 30. The SEC approved its Articles of Incorporation. Additional transaction follow:
 

Jun 15- Received subscription from various investors to 5,000 preference shares at P110 per share, with a 25% down payment

Jun 17- Received subscription to 30,000 ordinary shares at P52 per share with a 25% down payment 

Jun 30- Received the first installment due from the incorporators 

Jul 1- Received in full payment from June 17 subscribers. Issued the corresponding certificates. 

Jul 15- Received full payment from the June 15 subscribers

Jul 18- Received land worth P75,000 in exchange for 700 preference shares

Jul 30- Received the balance due from the incorporators

Required: 

• Journalize the above transactions.