A.

JOURNAL ENTRIES

1 Subscriptions receivable 1,800,000

Subscribed ordinary share capital 1,800,000
[(200,000 sh x P20) x 45%]

2 Cash 1,080,000
Subscriptions receivable 1,080,000
(60% x 1,800,000)

3 Cash 400,000
Subscriptions receivable 400,000
(50,000 sh x P20 x 40%)

Subscribed ordinary share capital 1,000,000

Ordinary share capital 1,000,000
(50,000 sh x P20) 320,000

4 Equipment (5,000 sh x P25) 125,000

Ordinary share capital (5,000 sh x P20) 100,000
Share premium - ordinary shares 25,000

5 Subscriptions receivable (10,000 sh x P28) 280,000

Subscribed ordinary share capital (10,000 sh x P20) 200,000
Share premium - ordinary shares 80,000

6 Cash 140,000
Subscriptions receivable 140,000
(280,000 x 50%)
 7 Cash 126,000
Subscriptions receivable 126,000
[(10,000 sh x 90%)x 28 x 50%]

Subscribed ordinary share capital 180,000

Ordinary share capital 180,000
[(10,000 sh x 90%) x P20]

Advances on delinquency sale 5,000

Cash 5,000

Cash 19,000
Advances on delinqency sale 5,000
Subscriptions receivable [(10,000 sh x P28) x 10% x 50%] 14,000

Subscribed ordinary share capital 20,000

Ordinary share capital 20,000
[(10,000 sh x 10%) x P20]

8 Income summary 800,000

Retained earnings 800,000

B. INDIVIDUAL REQUIREMENTS

1 19,000

2 320,000

3 1,300,000
4 800,000

5 105,000

6 2,100,000

7 3,005,000
Ordinary share capital 1,300,000
Subscribed ordinary share capital
800,000
Share premium 105,000
Retained earnings 800,000
Total 3,005,000

200,000 SHARES
45%
90,000 SHARES
20
1,800,000

50000 40000 90,000

20 20 20
1,000,000 800,000 1,800,000
60% 60% 60%
600,000 480,000 1,080,000
A. JOURNAL ENTRIES

1 Cash (25,000 sh x P75) 1,875,000

Preference share capital (25,000 sh x P50) 1,250,000
Share premium - preference shares 625,000

2 Cash (80,000 sh x P45) 3,600,000

Ordinary share capital (80,000 sh x P10) 800,000
Share premium - ordinary shares 2,800,000

3 Treasury preference shares 600,000

Cash 600,000
(10,000 sh x P60)

Preference share capital (10,000 sh x P50) 500,000

Share premium - preference shares** 100,000
Treasury preference shares 600,000

** maximum amount to be taken from Share premium - preference

(10,000/25,000 x 625,000) 250,000
but, amount needed only is P100,000

4 Treasury ordinary shares 200,000

Cash 200,000
(5,000 sh x P40)

5 Cash ( 3,000 sh x P50 ) 150,000

Treasury ordinary shares (3,000 sh x P40) 120,000
Share premium - treasury ordinary shares 30,000
 6 Ordinary shares Treasury
original number 80,000 2,000
Split up 2 2
update number 160,000 4,000

per share - old 10 40

divided by: 2 2
per share - new 5 20

7 Cash 100,000
Donated capital 100,000
(10,000 sh x P20 x 50%]

8 Ordinary share capital (500 sh x P5) 2,500

Share premium - ordinary shares 7,500
Treasury ordinary shares (500 sh x P20) 10,000

** maximum amount to be taken from Share premium - ordinary

(500/160,000 x 2,800,000) 8,750
but, amount needed only is P7,500

9 Income summary 2,500,000

Retained earnings 2,500,000

10 Retained earnings - unappropriated 70,000

Retained earnings - appropriated 70,000
B. INDIVIDUAL REQUIREMENTS

8 750,000

9 797,500

10 70,000

11 151,000
Ordinary shares Treasury Donated outstanding
original number 80,000 (2,000) 78,000
Split up 2 2 2
update number 160,000 (4,000) 156,000
Donated (5,000) (5,000)
Retirement (500) 500
balance 159,500 (3,500) (5,000) 151,000

12 174,500
ordinary preference total
159,500 15,000 174,500

13 7,425,000
Ordinary share capital 797,500
Preference share capital 750,000
Share premium
from preference 525,000
from ordinary 2,792,500
from treasury 30,000
donated capital 100,000 3,447,500
 Retained earnings - unappropriated 70,000
Retained earnings - appropriated 2,430,000 2,500,000
Treasury share capital (70,000)
Total 7,425,000

14 1,547,500

15 4,925,000
Ordinary share capital 797,500
Preference share capital 750,000
Share premium
from preference 525,000
from ordinary 2,792,500
from treasury 30,000
donated capital 100,000 3,447,500
Treasury share capital (70,000)
Total 4,925,000