*Prepare a table of comparison regarding the nature and characteristics of a Sole Proprietorship, Partnership and Corporation form of business.

True/False

*Preference shares of stock may be issued with par or no-par value.

*A corporation can be general partner in a partnership.

*A public corporation is one formed for the government ofa portion f the state.

*All incorporators are subscribers but a subscriber need not be an incorporators.

*A partnership can be corporator in a corporation.

*A shareholder in a corporation does not have the right to transact corporate business or to intervene in the management of the business.

*A corporation can come into existence by mere agreement of the parties as in the case of partnerships.

*Eleemosynary corporations are those organized for public charity.

*Shares of stock cannot be transferred without the consent of the other shareholders.

*Shareholders may be natural or juridical persons.

*Death of s shareholder will dissolve the corporation.

*A de jure corporation is a corporation existing in fact and in law.

*Shares without par may be issued for a consideration less than P5.00 per share.

*A corporation may be an incorporator but not a corporator.

*All corporations issues shares of stock and are either public or private.

Activity 1. Share Issuance for Cash. Journalize the share capital transactions below:

Balda Tours Inc., is authorized to issue 220,000 shares of no-par ordinary shares, P15 state value. Journalize the following transactions:

May 23 Sold 4,000 shares of ordinary shares at P18 per share for cash.

June 19 Sold 12,500 shares of ordinary shares at P17 per share for cash.

Activity 2. Issuance of Ordinary Shares

Fernando Corporation is authorized to issue 400,000 shares of P85 par value ordinary shares. Journalize the following transactions:

Feb 10 Sold 75,000 shares of ordinary shares at 86/share, received cash.

27 Issued 21,500 shares of ordinary shares in exchange for land with a fair market value of

920,000 and a building with a fair market value of P1,087,500.

Mar 3 Sold 28,000 shares of ordinary shares at P86.50 per share, received cash.

ASSIGNMENT 1.Issuance of Ordinary and Preference Shares

Villarama Corporation was organized on January 1, 2015. It is authorized to issue 20,000 shares of 6%, P50 par value preferenceshares and 50,000 shares of with par value of P10 per share. The following stock transactions were completed during the year:

Jan. 10 Issued ordinary shares for cash P35 per share.

Mar 1 Issued 10,000 preference shares for cash at P55 per share.

Apr 1 Issued 2,500 ordinary shares for land. The asking price of the land wasP90,000; the fair market value of the land was P85,000.

May 1 Issued 7,500 ordinary shares for cash at P40 per share.

Sep 1 Issued 500 ordinary shares for cash at P60 per share.

Nov 1 Issued 2,000 preference shares for cash at P53 per share.

Required:

*Journalize the transactions.

*Post to the shareholders' equity accounts.

*Prepare the share capital section of the shareholders' equity as at Dec. 31, 2019.

ASSIGNMENT 2.

The shareholder's equity section of Nazaro Freight Express, Inc. as at December 31, 2019 appeared as follows:

6% Preference Shares, P75 par, 200,000 shares authorized,

70,000 shares issued P ?

Ordinary shares, P5 stated value, 500,000 shares authorized,

______ share issued and _____ shares outstanding 500,000

Share Premium-Ordinary 600,000

Retained Earnings 1,000,000

Treasury Stock-Ordinary, 10,000 shares, at Cost 40,000

Required:

Provide the answers to each of the following questions:

*What is the total issue price of the preference shares?

*How many ordinary shares were issued?

*How many ordinary shares are outstanding?

*What was the total issue price of the ordinary shares?

*What is the total shareholders equity?

*For how much per share was the treasury stock purchased?

*What is the amount of required preference dividends?