PRACTICE SET: SHARE TRANSACTIONS The following are the shares related transaction of Hope Corporation for the year 2021. Prepare journal entries and use the Memo Entry method in recording share transactions. DATE JANUARY 1 TRANSACTIONS Received authorization from SEC to issue 100,000 shares at P100 par value JANUARY 10 Issued 1,000 shares at par value to Slim Shady. JANUARY 15 Issued 2,000 shares at P110 per share to Kobe. JANUARY 30 Paid legal fees incurred through issuance of 1,000 shares. The shares are trading on this day at P112, and the legal fees are normally billed by Atty Scam at P1,000 per hour. The company incurred a total of 100 hours. FEBRUARY 15 Issued 5,000 shares of stock to Khaleed for a land with a fair value of P800,000. The shares are currently trading at P120 on this day. Underwriter's fee incurred as a result of issuance is P20,000. FEBRUARY 28 Received subscriptions of P150 per share from the following investors: Shaq, 1,000 shares; Tim, 1,500 shares; and Tracy, 2,000 shares. MARCH 15 Shaq and Tim paid 25% of their subscriptions, and Tracy paid 50% of his subscription. MARCH 31 Reacquires the shares purchased by Slim Shady for P150,000. APRIL 15 Issued 5,000 shares to Grock for a land with an unknown fair value. The shares are trading at P105 on this day. APRIL 30 Shaq paid his subscription in full. Tim paid another 25% of his subscription. MAY 15 Reissues 500 shares in the treasury to Sun for P200 per share. MAY 31 Tim told Hope Corporation that he cannot pay the remaining balance of his subscription. JUNE 15 A public auction was made in relation to Tim's delinquency, and Hope Corporation incurred advertising expense of P10,000. Tony, the highest bidder, paid the offer price for 500 shares. JUNE 30 Reissues another 500 shares in the treasury to Ling for P110 per share. JULY 15 Wade subscribed 1,000 shares at P120 per share and paid 25% of the subscription as down payment. JULY 31 Tracy informs Hope Corporation that he can no longer pay for the remaining balance of his subscription due to financial difficulties. AUGUST 15 Wade paid additional 25% of his subscription. AUGUST 31 Reacquired 1,000 shares from Kobe, for P150 per share. SEPTEMBER 15 A public auction was made for Tracy's delinquency, and interest incurred as of this date was already P2,000. There were no bidders, and Hope Corporation decided reacquire 700 of its own shares. SEPTEMBER 30 Issued 3,000 shares to Iverson for P120 per share. OCTOBER 10 Wade paid his subscription in full. OCTOBER 15 Retired 1,000 shares reacquired from Kobe on August 31. DECEMBER 31 Profit for the year was P1,000,000. At the end of 2020, Retained Earnings has a credit balance of P3,000,000 (all unappropriated). Hint: close Income Summary account to Retained Earnings a. Additional requirements: 1. For the current year, what is the ending balance of: Share Capital b. Share Premium c. Treasury Shares d. Share Premium - Treasury Shares e. Share Premium - Retirement f. Subscription Receivable g. Subscribed Share Capital h. Retained Earnings - Unappropriated i. Retained Earnings - Appropriated 2. Number of shares Issued? 3. Number of shares Outstanding? 4. Number of shares in Treasury? 5. How much is the total Asset, assuming Liabilities are P1,500,000? END PRACTICE SET: SHARE TRANSACTIONS The following are the shares related transaction of Hope Corporation for the year 2021. Prepare journal entries and use the Memo Entry method in recording share transactions. DATE JANUARY 1 TRANSACTIONS Received authorization from SEC to issue 100,000 shares at P100 par value JANUARY 10 Issued 1,000 shares at par value to Slim Shady. JANUARY 15 Issued 2,000 shares at P110 per share to Kobe. JANUARY 30 Paid legal fees incurred through issuance of 1,000 shares. The shares are trading on this day at P112, and the legal fees are normally billed by Atty Scam at P1,000 per hour. The company incurred a total of 100 hours. FEBRUARY 15 Issued 5,000 shares of stock to Khaleed for a land with a fair value of P800,000. The shares are currently trading at P120 on this day. Underwriter's fee incurred as a result of issuance is P20,000. FEBRUARY 28 Received subscriptions of P150 per share from the following investors: Shaq, 1,000 shares; Tim, 1,500 shares; and Tracy, 2,000 shares. MARCH 15 Shaq and Tim paid 25% of their subscriptions, and Tracy paid 50% of his subscription. MARCH 31 Reacquires the shares purchased by Slim Shady for P150,000. APRIL 15 Issued 5,000 shares to Grock for a land with an unknown fair value. The shares are trading at P105 on this day. APRIL 30 Shaq paid his subscription in full. Tim paid another 25% of his subscription. MAY 15 Reissues 500 shares in the treasury to Sun for P200 per share. MAY 31 Tim told Hope Corporation that he cannot pay the remaining balance of his subscription. JUNE 15 A public auction was made in relation to Tim's delinquency, and Hope Corporation incurred advertising expense of P10,000. Tony, the highest bidder, paid the offer price for 500 shares. JUNE 30 Reissues another 500 shares in the treasury to Ling for P110 per share. JULY 15 Wade subscribed 1,000 shares at P120 per share and paid 25% of the subscription as down payment. JULY 31 Tracy informs Hope Corporation that he can no longer pay for the remaining balance of his subscription due to financial difficulties. AUGUST 15 Wade paid additional 25% of his subscription. AUGUST 31 Reacquired 1,000 shares from Kobe, for P150 per share. SEPTEMBER 15 A public auction was made for Tracy's delinquency, and interest incurred as of this date was already P2,000. There were no bidders, and Hope Corporation decided reacquire 700 of its own shares. SEPTEMBER 30 Issued 3,000 shares to Iverson for P120 per share. OCTOBER 10 Wade paid his subscription in full. OCTOBER 15 Retired 1,000 shares reacquired from Kobe on August 31. DECEMBER 31 Profit for the year was P1,000,000. At the end of 2020, Retained Earnings has a credit balance of P3,000,000 (all unappropriated). Hint: close Income Summary account to Retained Earnings a. Additional requirements: 1. For the current year, what is the ending balance of: Share Capital b. Share Premium c. Treasury Shares d. Share Premium - Treasury Shares e. Share Premium - Retirement f. Subscription Receivable g. Subscribed Share Capital h. Retained Earnings - Unappropriated i. Retained Earnings - Appropriated 2. Number of shares Issued? 3. Number of shares Outstanding? 4. Number of shares in Treasury? 5. How much is the total Asset, assuming Liabilities are P1,500,000? END