Question 1:

Monte Alegre Development Corporation plans to acquire a parcel of land in exchange for 5,000 preference share with a par value of P100. Record the above transactions assuming: 1) The market value of the land was P550,000 2) The market value of the share on this date is P110 3) There is no known market value for both the land and share.Cebu Centennial Hotel was organized on Aug. 5, 20A with an authorized share capital consisting of 100,000 ordinary shares and 10% preference share of 50,000 with par values of P100 and P30 respectively: The incorporators are as follows: Shares Subscribed Incorporators Payments Received Preference Ordinary Preference Zangie Lou David Ordinary 2,000 4,500 P60,000 450,000 Mary Joy Posing 2,500 4,600 75,000 460,000 Kareen Leon 2,300 4,300 69,000 430,000 Michelle Ogatis 1,800 4,400 58,000 440,000 Rosemarie Pabriga 2,600 4,800 78,000 480,000 Dympha Calumpiano 2,800 4,400 84,000 440,000 14,000 27,000 P420,000 P2,700,000 Aug. 5- Issued 200 ordinary shares at P100 par value per share for incorporation expense worth P25,000. Aug. 10 Before the first meeting of the Board of Directors, the above-named incorporators have paid in full their subscription balances and were issued by share certificates. Aug. 15 Ronalyn Cabreros subscribed to 1,000 ordinary share and 200 preference share at P105 and P35 respectively and made a 20% down payment for each class of share. Aug. 20 Lucy Tumulak, owner of the adjacent lot to the hotel, subscribed to 3,000 ordinary shares at P105 in exchange for the lot to be used as parking space. Share certificate was issued. Aug. 28 Cherry Lyn Limbago subscribed to 2,000 preference share of P32. Paid in full her subscription balance and issued a share certificate. Aug. 29 Ronalyn Cabreros paid her subscription balance for ordinary share and was issued a share certificate. Required: 1) Journal Entry to record: a) authorization b) subscription c) collection and d) issuance of share certificate 2) Journal Entry to record the subsequent transactions. 3) Prepare a Shareholders' Equity section under Memorandum and Journal Entry Methods