Please give the journal entries, show solution and explanation to record the foregoing transactions and prepare the equity section of the statement of financial position as of January 31, 2020 under: a. memorandum entry method b. journal entry method Lesson: Preparation of the Statement of Equity: Introduction to Corporate Type of Business

UST COLLEGE OF COMMERCE & BUSINESS ADMINISTRATION Practice Exercises The following are the transactions of JEYA Inc. for the month of January 2020. January 5 officially formed the corporation with 5,000,000 authorized share capital at P10 par value. January 6 the incorporators subscribed and paid in full 1,000,000 shares. January 8 issued 500,000 shares to an investors for P15 per share. January 10 received subscription from an investor for 200,000 shares at P20 per share. January 15 issued 5,000 shares for incorporation services rendered by a consultancy firm. The service is worth P100,000. January 20 issued 500,000 shares for P16 per share. January 24 collected the payment for subscription on January 10. January 27 received subscription for 1,000,000 shares at P11 per share receiving 50% advanced payment. January 30 issued 2,000 shares for legal services received for fixing the incorporation requirements. The service is valued at P50,000. Required: Give the journal entries to record the foregoing transactions and prepare the equity section of the statement of financial position as of January 31, 2020 under a. memorandum entry method b. journal entry method