Professional Documents
Culture Documents
Subscriptions for 100 shares at par value Subscriptions Receivable 10,000 Subscritions Receivable
Subscribed Share Capital 10,000 Subscribed Share Capital
Issuance of stock certificates upon full payment of Subscribed Share Capital 10,000 Subscribed Share Capital
subscriptions Unissued Share Capital 10,000 Share Capital
Subscriptions for 100 shares at P102 per share Subscriptions Receivable 10,200 Subscriptions Receivable
Subscribed Share Capital 10,000 Subscribed Share Capital
Share Premium 200 Share Premium
Issuance of 500 shares in exchange for land. FMV of the land Land 50,000 Land
at the time of exhange is P50,000. Unissued Share Capital 50,000 Share Capital
Issuance of 20 shares in exchange for services of one of the Pre Operating Expenses 2,000 Pre Operating Expenses
incorporators. FMV of the services is P2,000. Unissued Share Capital 2,000 Share Capital
The company was authorized to issue P100,000
share capital divided into 1,000 shares with a par
10,000
10,000
10,000
10,000
10,000
10,000
5,000
5,000
10,200
10,000
200
10,200
10,000
200
50,000
50,000
2,000
2,000
TWO METHODS OF ACCOUNTING FOR SHARE CAPITAL- pro forma entries
2 CLASSES OF STOCKS
ptions Receivable-Ordinary
Subscribed Ordinary Shares
ption Receivable-Preference
Subscribed Preference Shares
Share Premium - Preference
SHARE/STOCK DIVIDENDS
DECLARATION - Ordinary Retained Earnings
Shares Distributable- Ordinary
Ordinary Share Premium- Share Dividends