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Shares Issuance for Cash Roa Corporation's articles authorized the issuance of 100,000 ordinary shares
Shares Issuance for Cash Roa Corporation's articles authorized the issuance of 100,000 ordinary shares. Roa sold the following ordinary shares during 2007.
Feb. 12 July 10 Nov. 5
Sold 1,000 shares for P100,000. Sold 5,000 shares for P630,000. Sold 7,500 shares for P1,050,000.
Required: Prepare journal entries to record each issuance, assuming that: 1. the ordinary shares has a P100 par value. 2. the ordinary shares has a P10 stated value. 3. the ordinary shares has no-par or stated value.
Expert Solution
| 1) The ordinary shares has P100 Par Value: | |||
| Journal Entries: | |||
| Date | Account Titles and Explanation | Debit | Credit |
| Feb-12 | Cash | 100000 | |
| Common Stock | 100000 | ||
| Jul-10 | Cash | 630000 | |
| Common Stock (5000*100) | 500000 | ||
| Paid in Capital in Excess of Par | 130000 | ||
| Nov-05 | Cash | 1050000 | |
| Common Stock (7500*100) | 750000 | ||
| Paid in Capital in Excess of Par | 300000 | ||
| 2) The ordinary shares has P10 Stated Value: | |||
| Journal Entries: | |||
| Date | Account Titles and Explanation | Debit | Credit |
| Feb-12 | Cash | 100000 | |
| Common Stock (1000*10) | 10000 | ||
| Paid in Capital in Excess of Par | 90000 | ||
| Jul-10 | Cash | 630000 | |
| Common Stock (5000*10) | 50000 | ||
| Paid in Capital in Excess of Par | 580000 | ||
| Nov-05 | Cash | 1050000 | |
| Common Stock (7500*10) | 75000 | ||
| Paid in Capital in Excess of Par | 975000 | ||
| 3) The ordinary shares has No par or stated Value: | |||
| Journal Entries: | |||
| Date | Account Titles and Explanation | Debit | Credit |
| Feb-12 | Cash | 100000 | |
| Common Stock | 100000 | ||
| Jul-10 | Cash | 630000 | |
| Common Stock | 630000 | ||
| Nov-05 | Cash | 1050000 | |
| Common Stock | 1050000 | ||
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