On August 1, 2014 ABC Corporation was authorized to issue 150,000 ordinary shares and 100,000 8% preference share. The preference shares were issued at P45 par while the ordinary shares were issued at P18 par. The following stock transactions were completed:

Aug 1- Received subscriptions for 45,000 ordinary shares at par. The subscribers paid one third of the subscription price, the balance in two equal installments.

Aug 5- Received subscription for 35,000 preference shares at par with 50% down payment, the balance payable at the end of the month

Aug 10- Issued 32,000 ordinary shares at three investors at 10% above par

Aug 12- Issued 5,000 preference shares in exchange for equipment worth P380,000.

Aug 30- Preference subscribers on Aug 5 paid in full

Sept 1- A call was made by the Board for the first installment of ordinary share subscribers on Aug 1

Sept 30- A call was made by the Board for the second installment of ordinary share subscribers on Aug 1 and stock certificates were issued accordingly except for one shareholder, Rex, who subscribed to 4,000 shares and did not heed the call (but still not considered as delinquent shares)

Requirement: Journalize each transaction starting Authorization to Sept 30. Determine the balances of Share Capital, Subscribed Share Capital, Subscription Receivable and Additional Paid in Capital for both ordinary share and preference share and balance. (Show solutions)