Cash Unissued share capital common 250000 250000 0225 Sneezy subscribed 500

Cash unissued share capital common 250000 250000 0225

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Cash Unissued share capital - common 250,000 250,000 02/25 Sneezy subscribed 500 common shares and 500 preferred shares, both at par. Subscription receivable - common Subscription receivable - preferred 50,000 25,000 Subscribed share capital - common 50,000 Subscribed share capital - preferred 25,000 03/10 Collected from Sneezy full payment for his subscription Cash 75,000 Subscription receivable - common 50,000 Subscription receivable - preferred 25,000 03/10 Stock certificate was issued to Sneezy Subscribed share capital - common 50,000 Subscribed share capital - preferred 25,000 Unissued share capital - common 50,000 Unissued share capital - preferred 25,000 04/30 Grumpy subscribed 1,000 common shares at P110 and 1,000 preferred shares P60. Paid 50% in cash. Cash Subscription receivable - common 55,000 55,000 Subscribed share capital - common 100,000 Share premium – common 10,000 Cash 30,000 Subscription receivable - preferred 30,000 Subscribed share capital - preferred 50,000 Share premium - preferred 10,000 05/30 Full payment was received from Grumpy and stock certificates were issued. Cash Subscription receivable - common 85,000 55,000 Subscription receivable - preferred 30,000 Subscribed share capital - common 100,000 Subscribed share capital - preferred 50,000 Unissued share capital - common 100,000 Unissued share capital - preferred 50,000 06/15 Dopey exchange his land with a fair value of P450,000 for 4,000 common shares. Land Unissued share capital - common 450,000 400,000 Share premium - common 50,000 Two kinds of shares (Common and preferred) – no par value The following conditions must be present in order for a corporation to issue no par shares: a. Total consideration received from issuance of no-par shares shall be treated entirely as share capital and be available for dividend distribution. b. Issued price should not be less than P5.00 per share. c. Preference shares shall not be issued as no-par share. d. Banks, trust companies, insurance companies, and building and loan associations are not be permitted to issue no-par value shares of stock. Corporations may issue no-par share with or without stated value. The differences between the two are presented below. Course Module
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Advanced Financial Accounting and Reporting 1 68 Partnership Basic Considerations and Formation Illustration 6-2 Transactions With stated value Without stated value Sold 1,000 shares for cash at stated value of P100 Cash Share capital - no-par P100,000 P100,000 Cash Share capital - no-par P100,000 P100,000 Sold 1,000 shares for cash with stated value of P100 at P120 Cash Share capital - no-par 120,000 100,000 Cash Share capital - no-par 120,000 120,000 Share premium 20,000 Subscribed 1,000 shares with stated value of P100 at P120. 50% was paid in cash Cash Subscription receivable Share capital - no-par 60,000 60,000 100,000 Cash Subscription receivable Share capital - nopar 60,000 60,000 120,000 Share premium 20,000 Dopey exchange his land with a fair value of P450,000 for 4,000 common shares with stated value of P100. Land Share capital - no-par Share premium 450,000 400,000 50,000 Land Share capital - no-par 450,000 450,000 Treasury Shares Concept of Treasury Shares Treasury shares or treasury stocks are issued shares repurchased from shareholders by the corporation. These shares are issued but not outstanding. It has no voting rights and right to receive dividends.
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