I. Journalize the following transactions.

a. A corporation issued 10,000 shares of common stock at a par value of $40 per share. The journal entry to record the issue of the shares would be:

b. A corporation issued 20,000 shares of common stock with a par value of $40 per share for P45 per share. The journal entry to record the issue of the shares would be:

ABC Corporation was organized on January 1, 2018 and is authorized to issue 100,000 shares of non-par value ordinary share, and 200,000 shares of P100 par value preferred share. The ordinary share has a stated value of P10 per share.

The following transactions relating to its share capital took place during the month of January:

c. The incorporators issued for cash 20,000 shares at stated value.

d. Received subscriptions from various subscribers for 10,000 ordinary shares at P13 per share and 2,000preference shares at P105 per share. The subscribers paid 40% of the subscription price and the remaining 60% is payable within 60 days from subscription date.

d.1. Subscription:

d.2. Payment:

e. Issued for cash 5,000 shares at P110 per share.

f. Merchandise inventory was received from investors in exchange for 500 ordinary shares.

g. Issued 1,000 ordinary shares for incorporation services rendered by the lawyer. The fair market value of such services is P12,000.

h. Issued 4,000 ordinary shares in exchange for equipment valued at P50,000.

i. Received the balance due from the subscribers of 2,000 preference shares in (d) and corresponding certificates were issued.

i.1. Payment:

i.2. Issuance of certificate of shares.

II. Answer the following questions. Write the required journal entries.

A. The following accounts are found in the trial balance of Maharlika Enterprises Corp. at the end of December 31, 2018:

Authorized ordinary share, P50 par P 2,000,000

Subscription Receivable-collectible on Jan 31, 2019 200,000

Unissued ordinary share 800,000

Subscribed ordinary share 400,000

Share premium-ordinary 300,000

1. What is the total number of shares issued? ___________

2. What is the total number of shares available for subscription? ___________

3. What is the total contributed capital? _____________

Journalize the following:

1. Authorization of ordinary share at P50 par.

2. Subscription of shares at 25%.

3. Payment of subscribed shares.

4. Issuance of ordinary shares.

B. On July 1, 2018. Nokia Corporation issued 1,000 of P10 par ordinary shares and 2,000 of P10 par convertible preference shares for a lump sum price of P45,000. At this date, Nokia's ordinary and preference were selling at P18 and P14 per share.

1. What is the amount credited to Share Premium-Ordinary? _____________

2. What is the journal entry to record the transaction?

3. What is the amount credited to Share Premium-Preference? ___________

4. What is the journal entry to record the transaction?

C. Beloved Company was incorporated on January 1, 2018 with a authorized share capital of 300,000 shares at P20 par value. Record the transactions completed during the months of January and February.

1. the memorandum entry

2. the journal entry method

a. The incorporators subscribed to twenty five percentof the authorized share capital and paid 25% of the subscription price.

b. Beloved Company issued 10,000 shares for cash of P22 per share.

c. Beloved issued 20,000 shares in exchange of a piece of land amounting to P500,000.

d. The incorporators paid the balance of the subscription.

e. Beloved issued an additional 50,000 shares at P25 per share.

Answer the following question:

1. How much is the outstanding shares?_____________

2. How much is the subscription receivable?______________

3. How much is the total contributed capital?______________

D. The following is a list of selected account balances taken from December 31, 2018 general ledger of Marcelo Corporation:

Accounts Payable P 1,400,000

Accounts Receivable 2,357,000

Ordinary Share Capital 1,260,000

Share Premium-Ordinary Share 1,087,750

Share Premium-Preference Share 92,100

Preference Share Capital 500,000

Subscribed Preference Share 140,000

Retained Earnings 191,950

Subscription Receivable-Preference Share 105,000

1. What is the total contributed capital for Marcelo Corporation at December 31, 2018? ____________

2. What is the total shareholder's equity of Marcelo Corporation as of December 31, 2018? ____________

3. Prepare the shareholder's equity section of Marcelo Corporation as of December 31, 2018.