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The company issued for 1000000 cash, 1000 shares of P200 par value Preference share and 2000 shares of P100 ordinary share
The company issued for 1000000 cash, 1000 shares of P200 par value Preference share and 2000 shares of P100 ordinary share. The preference and ordinary shares have fair values of P240 and P180 per share, respectively on the date of sale. Prepare the journal entry.
The company issued for 1000000 cash, 1000 shares of P200 par value Preference share and 2000 shares of P100 ordinary share. The preference share has a fair value of P240 on the date of sale. No fair value is available for the ordinary share. Prepare the journal entry
Expert Solution
| Journal Entries: | |||
| No. | Account | Debit (P) | Credit (P) |
| Cash (2,000*P180) | 360000 | ||
| Common Stock (2,000 * P100) | 200000 | ||
| Paid in Capital in Excess of Par (2,000 * P80) | 160000 | ||
| Cash (1,000*P240) | 240000 | ||
| Preferred Stock (1,000 * P200) | 200000 | ||
| Paid in Capital in Excess of Par (1,000 * P40) | 40000 | ||
| Journal Entries: | |||
| No. | Account | Debit (P) | Credit (P) |
| Cash (2,000*P100) | 200000 | ||
| Common Stock (2,000 * P100) | 200000 | ||
| Cash (1,000*P240) | 240000 | ||
| Preferred Stock (1,000 * P200) | 200000 | ||
| Paid in Capital in Excess of Par (1,000 * P40) | 40000 | ||
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