Answer numbers 5-10 with solution and explanation. Thank you.

Direction a. Prepare the entries using the memorandum entry method. memorandum entry method and present the shareholders' equity section: b. Give the total number of shares issued, paid in capital at par, additional paid in capital. 5. Prepare the journal entries to record each of the following transactions under the Feb. 1 Best Securities Corporation was granted by the SEC to issue 1,000,000 shares of stocks at a par value of P10 after it submitted its Articles of Incorporation providing among others a required down payment of at least 30% with the balance to be paid within three months. The articles mentioned four incorporators who subscribed 75,000 shares each at par. A and B gave a down payment of 20% while C and D gave 50%. 14 Best Securities Corporation sold for cash 160,000 ordinary shares at P12 per . Mar. 14 Gonzalo Enterprises received 320,000 ordinary shares from Best Securities Corporation in exchange for land with a cost of P1,750,000 but with an appraised value which was twice the cost. Apr. 28 Isko Pangilinan, a lawyer, received 4,500 common shares from Best Securities for legal services rendered amounting to P50,000. 30 The balance of the subscription of A and B were collected. 6. Refer to No. 5, answer the same requirements but use the journal entry method. 7. The following accounts were picked up from the general ledger of Forever Corporation after its first month of incorporation: Credit Debit Cash P 700,000 Subscription Receivable 240,000 Subscribed Share Capital 150,000 Share Capital Share Premium Total P1,090,000 Direction: Reconstruct the entries made for the following: a) Subscription at a premium of P40,000. b) Collection of subscrintia P 160,000 200,000 650,000 80,000 P1,090,000 appraised va Apr. 28 Isko Pangilinan, a lawyer, for legal services rendered amounting to 30 The balance of the subscription of A and B were collected. b & Refer to No. 5, answer the same requirements but use the journal entry method. 7. The following accounts were picked up from the general ledger of Forever Corporation Credit c after its first month of incorporation: Debit P 700,000 240,000 150,000 10. Cash Subscription Receivable Subscribed Share Capital Share Capital Share Premium P 160,000 200,000 650,000 80,000 P1,090,000 P1,090,000 Total Direction: Reconstruct the entries made for the following: a) Subscription at a premium of P40,000. b) Collection of subscription. c) Issuance of stock certificate for subscribed shares fully paid. d) Cash received for additional shares sold at a premium. 8. The financial position of Pipay Corporation showed the following information as at March 31, 2019, the year that the corporation was authorized to issued 500,000 shares. Assets: Stockholder's Equity Cash P 500,000 Paid In Capital: Properties 1,560,000 Share Capital, Par P10, Subscription Receivable P 1,200,000 500,000 Subscribed 1,000,000 Paid in Excess of Par P2,560,000 360.000 Direction: P 2,560,000 a. How many shares are still unissued? b. How many shares are still available for sale or for subscription? 178 down payment. dex fo down sties les Paid in Record receipt of cash from four incorporators who subscribed at par with a 20% d. Record the receipt of properties acquired for shares issued at a premium. Record the additional receipt of cash from the incorporators. 4. Using the information given in Exercise 8, record following additional transactions for 2019. And prepare a revised shareholders' equity. 2) Received subscriptions from four subscribers for 10,000 shares at a price of P15. 1 Sold 1,000 shares at P12.00 per share. A 25% down payment was required. 3) A lawyer who billed the company P100,000 received the corresponding shares for his legal services in helping the incorporators prepare the legal papers. 4) The incorporators paid in full and were given stock certificates. 5) Two subscribers who own half of the shares in transaction 2 paid in full while the other were given notice to pay within a month. 6) Net income for the year amounted to P300,000. Use the following format to revise the shareholders' equity: Share Capital Subscribed Share Capital Excess of Par Retained Earnings P1,200,000 3/31/19 Balances P1,000,000 P360,000 1) Sale of 1,000 shares b. Based on the revised shareholders' equity, how many shares are still unissued? c. How many shares are still available for sale or for subscription? d. How much is legal capital? 10. The corporation is authorized to issue 100,000 shares with a par value of P50. A list of the incorporators, their subscription and payments are given below: Incorporators Subscription at par Down Payment Second Payment P150,250 Celerio P65,750 5,500 shares 37,500 112,500 Levi 3,000 168,750 56,250 Amboy 4,500 53,000 Inocencio 4,000 43,750 Madrid 3,500 56,250 1 500 147 000 115.250 56,250 share. Received ned love a dorm P12 ya subscriptions from four subscribers for 10000h A 25% down payment was required 3) A lawyer who billed the company P100.000 received the for his legal services in helping the incorporators prepare the legile 3) Two subscribers who own half of the shares in transaction and in the 1) The incorporators paid in full and were given stock certificates two were given notice to pay within a month 6) Net income for the year amounted to P300.000 Use the following format to revise the shareholders' equity ecurities curities Share Capital P1,200,000 Subscribed Paid in Share Capital Excess of Par P1,000,000 P360,000 3/31/19 Balances 1) Sale of 1,000 shares Retard Emig oration C b. Based on the revised shareholders' equity, how many shares are still issued How many shares are still available for sale or for subscription? How much is legal capital? 10. The corporation is authorized to issue 100,000 shares with a par value of P50. A list of the incorporators, their subscription and payments are given below: Subscription at par 5,500 shares 3,000 37,500 112,500 4,500 56,250 168,750 Inocencio 4,000 53,000 147 000 Madrid 3,500 43,750 115.250 4,500 56,250 56,250 Reyes Down Payment Second Payment P 65,750 P150,250 Incorporators Celerio Levi Amboy Direction: From the above data, determine whether the incorporators complied with the 50% paid up capital requirement as provided in the articles of incorporation. Answer following questions: a) How much is the authorized share capital of the corporation? b) How many shares are still available for subscription? c) How many shares were issued? d) Who among the incorporators should be given due notice to pay? moration approved by the Direction a. Prepare the entries using the memorandum entry method. memorandum entry method and present the shareholders' equity section: b. Give the total number of shares issued, paid in capital at par, additional paid in capital. 5. Prepare the journal entries to record each of the following transactions under the Feb. 1 Best Securities Corporation was granted by the SEC to issue 1,000,000 shares of stocks at a par value of P10 after it submitted its Articles of Incorporation providing among others a required down payment of at least 30% with the balance to be paid within three months. The articles mentioned four incorporators who subscribed 75,000 shares each at par. A and B gave a down payment of 20% while C and D gave 50%. 14 Best Securities Corporation sold for cash 160,000 ordinary shares at P12 per . Mar. 14 Gonzalo Enterprises received 320,000 ordinary shares from Best Securities Corporation in exchange for land with a cost of P1,750,000 but with an appraised value which was twice the cost. Apr. 28 Isko Pangilinan, a lawyer, received 4,500 common shares from Best Securities for legal services rendered amounting to P50,000. 30 The balance of the subscription of A and B were collected. 6. Refer to No. 5, answer the same requirements but use the journal entry method. 7. The following accounts were picked up from the general ledger of Forever Corporation after its first month of incorporation: Credit Debit Cash P 700,000 Subscription Receivable 240,000 Subscribed Share Capital 150,000 Share Capital Share Premium Total P1,090,000 Direction: Reconstruct the entries made for the following: a) Subscription at a premium of P40,000. b) Collection of subscrintia P 160,000 200,000 650,000 80,000 P1,090,000 appraised va Apr. 28 Isko Pangilinan, a lawyer, for legal services rendered amounting to 30 The balance of the subscription of A and B were collected. b & Refer to No. 5, answer the same requirements but use the journal entry method. 7. The following accounts were picked up from the general ledger of Forever Corporation Credit c after its first month of incorporation: Debit P 700,000 240,000 150,000 10. Cash Subscription Receivable Subscribed Share Capital Share Capital Share Premium P 160,000 200,000 650,000 80,000 P1,090,000 P1,090,000 Total Direction: Reconstruct the entries made for the following: a) Subscription at a premium of P40,000. b) Collection of subscription. c) Issuance of stock certificate for subscribed shares fully paid. d) Cash received for additional shares sold at a premium. 8. The financial position of Pipay Corporation showed the following information as at March 31, 2019, the year that the corporation was authorized to issued 500,000 shares. Assets: Stockholder's Equity Cash P 500,000 Paid In Capital: Properties 1,560,000 Share Capital, Par P10, Subscription Receivable P 1,200,000 500,000 Subscribed 1,000,000 Paid in Excess of Par P2,560,000 360.000 Direction: P 2,560,000 a. How many shares are still unissued? b. How many shares are still available for sale or for subscription? 178 down payment. dex fo down sties les Paid in Record receipt of cash from four incorporators who subscribed at par with a 20% d. Record the receipt of properties acquired for shares issued at a premium. Record the additional receipt of cash from the incorporators. 4. Using the information given in Exercise 8, record following additional transactions for 2019. And prepare a revised shareholders' equity. 2) Received subscriptions from four subscribers for 10,000 shares at a price of P15. 1 Sold 1,000 shares at P12.00 per share. A 25% down payment was required. 3) A lawyer who billed the company P100,000 received the corresponding shares for his legal services in helping the incorporators prepare the legal papers. 4) The incorporators paid in full and were given stock certificates. 5) Two subscribers who own half of the shares in transaction 2 paid in full while the other were given notice to pay within a month. 6) Net income for the year amounted to P300,000. Use the following format to revise the shareholders' equity: Share Capital Subscribed Share Capital Excess of Par Retained Earnings P1,200,000 3/31/19 Balances P1,000,000 P360,000 1) Sale of 1,000 shares b. Based on the revised shareholders' equity, how many shares are still unissued? c. How many shares are still available for sale or for subscription? d. How much is legal capital? 10. The corporation is authorized to issue 100,000 shares with a par value of P50. A list of the incorporators, their subscription and payments are given below: Incorporators Subscription at par Down Payment Second Payment P150,250 Celerio P65,750 5,500 shares 37,500 112,500 Levi 3,000 168,750 56,250 Amboy 4,500 53,000 Inocencio 4,000 43,750 Madrid 3,500 56,250 1 500 147 000 115.250 56,250 share. Received ned love a dorm P12 ya subscriptions from four subscribers for 10000h A 25% down payment was required 3) A lawyer who billed the company P100.000 received the for his legal services in helping the incorporators prepare the legile 3) Two subscribers who own half of the shares in transaction and in the 1) The incorporators paid in full and were given stock certificates two were given notice to pay within a month 6) Net income for the year amounted to P300.000 Use the following format to revise the shareholders' equity ecurities curities Share Capital P1,200,000 Subscribed Paid in Share Capital Excess of Par P1,000,000 P360,000 3/31/19 Balances 1) Sale of 1,000 shares Retard Emig oration C b. Based on the revised shareholders' equity, how many shares are still issued How many shares are still available for sale or for subscription? How much is legal capital? 10. The corporation is authorized to issue 100,000 shares with a par value of P50. A list of the incorporators, their subscription and payments are given below: Subscription at par 5,500 shares 3,000 37,500 112,500 4,500 56,250 168,750 Inocencio 4,000 53,000 147 000 Madrid 3,500 43,750 115.250 4,500 56,250 56,250 Reyes Down Payment Second Payment P 65,750 P150,250 Incorporators Celerio Levi Amboy Direction: From the above data, determine whether the incorporators complied with the 50% paid up capital requirement as provided in the articles of incorporation. Answer following questions: a) How much is the authorized share capital of the corporation? b) How many shares are still available for subscription? c) How many shares were issued? d) Who among the incorporators should be given due notice to pay? moration approved by the