Problem 1 Edison Tech Corporation was organized on February 3, 2019 with authorized share capital consisting of 200,000 shares of P 70 par value 12% preference share capital and 400,000 shares of ordinary share capital with P 40 stated value. The following transactions occurred during February and March: Feb 12 Issued 50,000 ordinary shares to incorporators for P 45 per share. Feb 15 Issued 20,000 preference shares for P 72 per share. Feb 27 Issued 5,000 ordinary shares for land with a book value of P 210,000 and fair market of value of P 285,000. Mar 03 Issued 2,000 ordinary shares for the services rendered by Atty. Damian. He assists the corporation in obtaining the certificate of incorporation and provides legal consultation relative to the incorporation. The value of his service cannot be estimated reliably. The fair market value of the shares is P 43. Mar 12 Issued 800 ordinary shares for P 36 per share. Mar 24 Issued 1,500 preference shares in exchange for equipment. The fair market value of the equipment was not able to assess. While the fair market value of the shares at the time of exchange was not available. Instruction: Prepare the journal entries using (1) Memorandum Entry Method and (2) Journal Entry Method. Problem 2 Oricon Paper Corporation started its business on May 1, 2018. Based on its Articles of Incorporation the corporation is authorized to issue 500,000 ordinary shares with P 20 par value per share. Presented below is the corporations contributed capital as of December 31, 2018: Ordinary Share Capital P 3,000,000 Ordinary Share Premium 750,000 Questions: (a) How many shares were issued? (b) Assuming all issued shares were sold for the same price, how much is the original issued price per share? Transactions occurred during January to May 2019: Jan 08 Received subscription for 200,000 shares at P 30 per share with 70% down payment. The balance is payable until Feb 05. Jan 19 Received the full payment of 80,0000 subscribed shares and issued stock certificate. Jan 22 The subscriber of 70,000 subscribed shares notify the corporation that he will not be able to settle the remaining balance. Therefore, the subscription is declared as delinquent. Jan 24 The corporation paid P 8,000 relevant to the sale of delinquent shares. The Highest Bidder agreed to received 30,000 shares and pay the incidental costs to sell the delinquent shares. Jan 28 Received the payment of Highest Bidder and issued the stock certificate as follows: 30,000 shares Highest bidder and 40,000 shares Defaulting subscriber. Feb 10 The corporation declared the 50,000 subscribed shares as delinquent. Feb 15 Paid P 6,000 relevant to the sale of delinquent shares. However, no highest bidder. Feb 18 The corporation decided to acquire its own shares and issued the stock certificate as follows: 24,000 shares defaulting subscribers and the remaining pertains to the issuing corporation. Instruction: Prepare the journal entries