On January 1, 2020, FGG Corporation was authorized to issue 50,000 ordinary shares at a par value of P100 pershare.
The shares were offered to the public at a subscription price of P125.
A subscription for a total of 10,000 shares was received from investors requiring a 25% downpayment with the balance payable in two (2) installments within six (6) months
The subscnbers paid the 1st installment on March March 31
On June 30, all paid in full except for Michael, a subscriber for 500 shares, who defaulted the company
The delinquent shares were advertised for public auction wherein P1,375 was spent for advertising and legal expenses.
Three (3) bidders responded to the announcement.
A bid was received as follows:
Ghean -400 shares
Linda-350 shares
Robert-300 shares
The highest bidder paid on July 5 and the stock certificates were issued.

Required:
Journalize and post the above transactions using Memorandum Entry Method
Prepare the Trial Balance of FGG Corporation as of July 31, 2020

 

  

Topic: Journalizing Transactions General Journal page 1 Date Particulars Ref DR CR 2020