Partnership & corporation

Question4: The following transactions relate to the shareholders' equity of Telecom Corporation for 2021, its initial year of operations and existence: a. On January 7, the articles of incorporation were filed with the Securities and Exchange Commission (SEC). The SEC authorized the issuance of 10,000 shares of P50 par value preference share capital and 200,000 shares of P10 par ordinary share capital b. On January 28, forty thousand ordinary shares were issued at P15 per share. c. On February 14, one hundred twenty thousand ordinary shares were issued in exchange for land and building that have an appraised value of P700,000 and P1, 100,000, respectively. On this date, the shares trade at P15 per share on the over the counter market. d. On February 24, the company issued to the lawyers 2,000 ordinary shares for legal services in connection with the incorporation. The fair value of the shares on this date is P16. e. On September 12, the company received subscriptions for 10,000 preference shares at P53 per share. A 40% down payment accompanied the subscriptions. The balance is due on October 1. f. October 1, the final payment on 10,000 shares subscribed in (e) was received. Required: (@) Using the journal entry method, record the foregoing transactions (b) Assume that there were no other share capital transactions until December 31. Determine the following as of December 31: (1) Total legal capital (2) Total share premium (3) Total contributed capital Question5: The partnership of Daryl and Emily had the following statement of financial position accounts as of December 31, 2021: Cash P240,000 Accounts Receivable 200,000 Inventory 280,000 Equipment 160,000 Accumulated Depreciation (16,000) Total Assets P864,000 Accounts Payable P344,000 Daryl, capital 280,000 Emily, capital 240,000 Total Liabilities and Partners' Equity P864,000 The partners agreed to incorporate the business, register the same as Cookie Bar Corporation and have the new corporation absorb all the assets and assume the liabilities of the partnership, after giving effect to the following adjustments a. An allowance for uncollectible accounts of P20,000 will be provided b. The merchandise inventory will be adjusted to its fair value of P320,000 c. The accumulated depreciation shall be increased by P6,000 to bring the carrying value of the equipment to its fair value Shares were issued, at par, equal in amount to the fair value of the net assets transferred to the corporation. Three other incorporators contributed total cash of P300,000 in exchange for the corporation's share capital. The shares were issued at par value. Required: (a) Prepare the entries in the books of the partnership of Daryl and Emily as a result of the foregoing b) Prepare the entries in the books of the Cookie Bar Corporation (c) Prepare statement of financial position for Cookie Bar Corporation, immediately after its organization