Gabayan, Inc. has been authorized to issue 125000 shares of 10 par ordinary shares. The following 2019 transactions relate to the initial issuance of Gabayan share.Feb. 1. Gabayan sold sensitive for 25000 shares of stock. The shares have a subscription price of 15 per share. One-third of the subscription price was receive as a down payment.Feb. 15. Gabayan sold 10000 shares for 180000.Mar. 1. An installment amounting to one-third of the subscription price was received.Mar. 19. Gabayan exchanged 200 shares of stock for a new two-way radio system having a fair market value of 3800Apr. 1. The final one-third of the subscription price was received and the share issued.Required:Prepare journal entries to record the transactions.

Problem #10 Subscription of Shares Gabayan, Inc. has been authorized to issue 125,000 shares of P10 par ordinary shares The following 2019 transactions relate to the initial issuance of Gabayan share: Feb. 1 Gabayan sold subscriptions for 25,000 shares of stock. The shares have a subscription price of P15 per share. One-third of the subscription price was received as a down payment. 15 Gabayan sold 10,000 shares for P180,000. Mar. 1 An installment amounting to one-third of the subscription price was received. 19 Gabayan exchanged 200 shares of stock for a new two-way radio system having a fair market value of P3,800. Apr. 1 The final one-third of the subscription price was received and the share issued. Required: Prepare journal entries to record the transactions