• Misamis Oriental State College of Agriculture and Technology

• BSA 9005

ANSWERS a. Memo Entry: Authorized to issue preference share capital, P100 par, 30,000 shares and Ordinary share capital, P50 par value, 100,000 shares. b. Cash 2,400,000 Ordinary share capital 2,000,000 Share premium – Ordinary 400,000 c. Cash 1,200,000 Preference share capital 1,000,000 Share premium – Preference 200,000 d. Subscription receivable - preference1,000,000 Subscribed preference share capital 1,000,000 e. Cash 400,000 Subscription receivable - preference 400,000 f. Legal expense 100,000 Preference share capital 100,000 g. Property, plant and equipment 1,300,000 Ordinary share capital 1,000,000 Share premium – ordinary 300,000 h. Subscription receivable – ordinary 750,000 Subscribed Ordinary share capital 750,000 i. Cash 300,000 Subscription receivable – ordinary 300,000 j. Cash 600,000 Subscription receivable –preference 600,000 Subscribed preference share capital 1,000,000 Preference share capital 1,000,000 k. Income and Expense Summary 2,000,000 Retained earnings