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Classroom Discussion 1 - 04172021

1) Superior Corp was authorized to issue 100,000 ordinary shares at P50 par value and 100,000 8% preference shares at P100 par value. Various stock transactions occurred in August and September involving the subscription and issuance of these shares. 2) In August, 60,000 ordinary shares were subscribed at par value with payments in three installments. Also, 40,000 preference shares were subscribed at par value with a 5% down payment. Some shares were issued above par. 3) By September 30th, the preference subscribers had paid in full and installment payments were received for the ordinary shares subscribed. Stock certificates were issued accordingly.

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124 views

Classroom Discussion 1 - 04172021

1) Superior Corp was authorized to issue 100,000 ordinary shares at P50 par value and 100,000 8% preference shares at P100 par value. Various stock transactions occurred in August and September involving the subscription and issuance of these shares. 2) In August, 60,000 ordinary shares were subscribed at par value with payments in three installments. Also, 40,000 preference shares were subscribed at par value with a 5% down payment. Some shares were issued above par. 3) By September 30th, the preference subscribers had paid in full and installment payments were received for the ordinary shares subscribed. Stock certificates were issued accordingly.

Uploaded by

LLYOD FRANCIS LAYLAY
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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UNIVERSAL COLLEGES OF PARANAQUE INC.

COLLEGE OF BUSINESS AND ACCOUNTANCY


FINANCIAL ACCOUNTING AND REPORTING 2

CLASSROOM DISCUSSION 1: (30 MINS ONLY)

ON AUGUST 1, 2012 SUPERIOR CORP. WAS AUTHORIZED TO ISSUE 100,000 ORDINARY SHARES
WITH

A PAR VALUE OF P50 PER SHARE AND 100,000 8% PREFERENCE SHARES WITH A PAR VALUE OF
P100

THE FOLLOWING STOCK TRANSACTIONS WERE COMPLETED:

AUG 1 RECEIVED SUBCRIPTIONS FOR 60,000 ORDINARY SHARES AT PAR.THE SUBSCRIBERS


PAID

ONE THIRD OF THE SUBSCRIPTION PRICE THE BALANCE IN TWO EQUAL INSTALLMENTS.
(TAN) - 1 PT FOR MIDTERM EXAM.

ACCOUNT TITLE DR CR
SUBSCRIPTION RECEIVABLE - OS 3,000,000
SUBSCRIBED SHARE CAPITAL - OS 3,000,000

CASH 1,000,000
SUBSCRIPTION RECEIVABLE -OS 1,000,000

5 RECEIVED SUBSCRIPTIOS FOR 40,000 PREFERENCE SHARES AT PAR WITH A 5% DOWN

PAYMENT THE BALANCE PAYABLE AT THE END OF THE MONTH.

(VERGARA) – 1PT FOR MIDTERM EXAM.


ACCOUNT TITLE DR CR
SUBSCRIPTION RECEIVABLE – PS 4,000,000
SUBSCRIBED SHARE CAPITAL - SPS 4,000,000

CASH (4,000,000 X .05) 200,000


SUBSCRIPTION RECEIVABLE -PS 200,000

10 ISSUED 20,000 ORDINARY SHARES AT P53 PER SHARE.

(ABITAGO) – 1PT FOR MIDTERM EXAM

ACCOUNT TITLE DR CR
CASH (20,000 X 53) 1,060,000
SHARE CAPITAL – OS (20,000 X 50) 1,000,000
SHARE PREMIUM – OS 60,000
12 ISSUED 5,000 PREFERENCE SHARES IN EXCHANGE FOR EQUIPMENT WORTH P700,000.
(ACEBOQUE) – 1PT FOR MIDTEM EXAM

ACCOUNT TITLE DR CR
EQUIPMENT 700,000
SHARE CAPITAL – PS (5,000 *100) 500,000
SHARE PREMIUM – PS (700K -500K) 200,000

30 PREFERENCE SUBCRIBERS PAID IN FULL

(ALMONICAR) - 1PT MIDTERM EXAM

ACCOUNT TITLE DR CR
CASH (4,000,000 – 200,000) 3,800,000
SUBSCRIPTION RECEIVABLE 3,800,000

SUBSCRIBED SHARE CAPITAL 4,000,000


SHARE CAPITAL – PS 4,000,000

SEPT 1

RECEIVED THE FIRST INSTALLMENT DUE FOR THE 60,000 ORDINARY SHARES SUBCRIBED.
(ALMONICAR) – 1PT MIDTERM EXAM

ACCOUNT TITLE DR CR
CASH 1,000,000
SUBSCRIPTION RECEIVABLE – OS 1,000,000

30 RECIEVED THE BALANCE DUE ON 57,500 SUBSCRIBED ORDINARY SHARES.STOCK


CERTIFICATES WERE ISSUED ACCORDINGLY.

ACCOUNT TITLE DR CR
CASH (57,500 * 50) * 1/3 958,333.34
SUBSCRIPTION RECEIVABLE – OS 958,333.34

SUBSCRIBED SHARE CAPITAL – OS 2,875,000


SHARE CAPITAL – OS 2,875,000

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