Partnership & Corporation

Question 1. Goodwill Corporation was authorized to issue 60,000, P100 par value ordinary share capital on November 3, 2021. The following are share capital transactions completed during the month of November: Nov. 4 Issued 9,000 shares to David at par Nov. 7 Received subscription from Ramos for 5,500 shares at P120 per share Nov. 11 Received subscription from Vargas for 6,000 shares at P125 per share. 25% down payment was collected. Nov. 15 Collected in full the subscription of Ramos and share certificate was correspondingly issued. Nov. 21 Issued 1,000 shares in exchange for machinery with equivalent cash price of P125,00 Nov. 22 Received full payment from Vargas Nov. 24 Received a statement of account for the services rendered by Delgado, for drafting and filing the Articles of Incorporation and the corporate by-laws. The bill is for P60,000 which is settled by issuing 500 ordinary shares Nov. 30 The remaining shares were subscribed by Bautista at P130 per share. The corporation collected 40% of the subscription price, the balance is payable on or before January 31, 2022 Required: (a) Journalize the foregoing transactions using the memorandum entry method (b) Prepare the contributed capital section of the Statement of Financial Position at December 31, 2021, assuming that there were no other transactions that occurred during December relating to share capital Question2: The Fernandez Corporation was incorporated on September 1, 2021 and was authorized to issue share capital as follows: 200,000 shares of no par ordinary shares 5,000 shares of 6% preference share at a par value of P200 The following share capital transactions took place in the months of September and October 2021. a. On September 14, subscriptions were received for the authorized ordinary shares at P30 per share on the following terms: 25% down in cash at the date of subscription, the balance is payable in three equal installments due on October 15, November 15 and December 15 b. On September 18, all of the preference shares are sold for cash at P220 per share. Transactions costs of P5,000 were incurred and paid c. On October 15, the corporation collected the first installment of the subscription in (a). Required: a. Journal entry to record the above transactions b. Shareholders' equity section of the statement of financial position as of October 31, 2021 Question 3: ABC Corporation which issues P15 par value ordinary shares, completed the following transactions during 2021. 1. Received subscription from Martinez for 25,000 shares at P18 per share 2. Received from Martinez 45% of the subscription price. 3. On due date, Martinez failed to pay the balance of the subscription. The shares were subsequently declared delinquent and were advertised for sale at a public auction. 4. Paid P4,000 for advertising the sale of the delinquent shares 5. Received bids from the following: Recto 10,000 shares Zubiri 9,000 shares Pichay 12,000 shares 6. The amount due from the highest bidder, plus 12% interest for two months on the balance of the subscription price, was collected. Shares were accordingly issued. Required: a) Prepare journal entries for the foregoing (b) Who is the highest bidder? Determine the share allotment between the highest bidder and Martinez