Activity 2. Issuance of Ordinary Shares

Fernando Corporation is authorized to issue 400,000 shares of P85 par value ordinary

shares. Journalize the following transactions:

Feb 10 Sold 75,000 shares of ordinary shares at 86/share, received cash.

27 Issued 21,500 shares of ordinary shares in exchange for land with a fair

market value of 920,000 and a building with a fair market value of P1,087,500.

Mar 3 Sold 28,000 shares of ordinary shares at P86.50 per share, received cash.