Answer the following

Direction: a. Prepare the entries using the memorandum entry method. 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 memorandum entry method and present the shareholders' equity section: 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 share to various shareholders. 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: Debit Credit Cash P 700,000 Subscription Receivable 240,000 P 160,000 Subscribed Share Capital 150,000 200,000 Share Capital 650,000 Share Premium 80,000 Total P1,090,000 P1,090,000 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: Cash Stockholder's Equity P 500,000 Properties Paid In Capital: 1,560,000 P 1,200,000 Subscription Receivable Share Capital, Par P10, 500,000 Subscribed 1,000,000 Paid in Excess of Par 360,000 P2,560,000 Direction: P 2,560,00 a. How many shares are still unissued? b. How many shares are still available for sale or for subscription?The following are selected accounts coming from the adjusted trial balance at the end of 2019: Sales Revenues P1,600,000, Rent Income P150,000, Cost of Sales P800,000, Selling Expenses P190,000, Administrative Expenses P130,000 and interest expense P25,000. a) First entry: close the above nominal accounts to the title Income Summary. Second entry: set up tax liability if the net income is taxable at 30% based on the kind of business described below: Case A, Case B, Case C. Third entry: close the profit to the equity account(s) also depends on Cases A, B, C: Case A: The business is owned by a sole proprietor, Artuz. Prior to making the closing entries, Artuz, Capital reflected a credit balance of P500,000 and Artuz. Drawings a credit balance of P48,000. This is a jewelry store. Case B: The business is owned by Artuz and Cruz, both CPAs. Prior to making the closing entries, the equity accounts reflected the following: Artuz, Capital, P600,000 credit balance; Cruz, Capital, P400,000 credit balance, Artuz, Drawings, P150,000 debit balance; Cruz, Drawings, P90,000 debit balance. Capital accounts are fixed and used as basis for dividing profits and losses. Case C: The business is a corporation. Prior to the closing entries, the shareholders' equity accounts showed the following: Share Capital, P1,500,000 and Retained Earnings P175,000 (where net income or net loss is accumulated) b) Using Cases A, B and C show the equity section of the Statement of Financial Position 2. Hawaiian Corporation issued 15,000 ordinary shares for cash of P800,000. Prepare the journal entry to record this event if the stock has : a. neither par nor stated value. b. a P50 par value. c. a P40 stated value. Use Paid in Excess of Stated Value for the excess payment. 3. The following are selected transactions which you are required to journalize: a. On March 1, ABS Co. received P2,750,000 cash from various shareholders in exchange for the maximum number of ordinary shares at a par value of P50. b. On April 1, GMA Co. issued no-par 8,000 ordinary shares with a P50 stated value in exchange for P500,000 cash. Use Paid in Excess of Stated Value for excess payment. c. On April 16, TV 5 issued 5,600 ordinary shares with a P50 par value in exchange for the following: P350,000 of inventory which market value is lesser by P50,000. d. On May 2, CNN received from a shareholder electronic equipment worth P255,000 with an attached P100,000 mortgage note to be assumed by the corporation. Shares with a par value of P100 were issued accordingly. Refer to a and d, how many shares were issued? 4. The following are selected transactions of Total Quality Unlimited with a P20 par share: a. Sold for cash 20,000 shares of stocks at P25 per share. b. Land with an appraised value of P1,250,000 was received from a shareholder. The corporation credited a premium for P50,000. c. The corporate lawyer hired by Total Quality Unlimited billed the firm P120,000 for legal services rendered. He was given the corresponding shares of stocks.Record receipt of cash from four incorporators who subscribed at par with a 20% down payment. d. Record the receipt of properties acquired for shares issued at a premium. e. Record the additional receipt of cash from the incorporators. o a. Using the information given in Exercise 8, record following additional transactions for 2019. And prepare a revised shareholders' equity. 1) Sold 1,000 shares at P12.00 per share. 2) Received subscriptions from four subscribers for 10,000 shares at a price of P15. 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 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: Subscribed Paid in Retained Share Capital Share Capital Excess of Par Earnings 3/31/19 Balances P1,200,000 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 Celerio 5,500 shares P 65,750 P150,250 Levi 3,000 37,500 1 12,500 Amboy 4,500 56,250 168,750 Inocencio 4,000 53,000 147.000 Madrid 3,500 43,750 115,250 Reyes 4,500 56,250 56,250 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? 6) 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