1. On January 1, 20x1, COMMISERATE CONDOLE Co. received authorization
from the SEC to issue share capital of ₱2,000,0000 divided into 20,000 shares with par value per share of ₱100. Of the total authorized share capital, 25% was subscribed at par value and 25% of the total subscription was paid at subscription date. On February 1, 20x1, COMMISERATE received full payment for 4,000 subscribed shares and issued the related share certificates. On February 28, 20x1, COMMISERATE received cash subscription for 2,000 shares at par value.
a. Provide the necessary journal entries under memorandum method.
b. Prepare the share capital portion of COMMISERATE's statement of financial position as of February 28, 20x1.
2. On April 1, 20x1, the board of directors of PEAL LOUD RINGING OF BELLS Co. declared ₱50 dividends per share to shareholders of record as of April 15, 20x1 for distribution on May 1, 20x1. The shareholders' equity of PEAL as of April 1, 20x1 is as follows:
Share capital, authorized capital 20,000 shares, ₱100 par 1,600,000
Subscribed share capital 440,000
Share premium 200,000
Retained earnings 908,000
Treasury shares (at cost of ₱120 per share) (288,000)
Other components of equity 140,000
Total shareholders' equity 3,000,000
Requirement: Provide all the pertinent entries.
416,475 students got unstuck by Course
Hero in the last week
Our Expert Tutors provide step by step solutions to help you excel in your courses