GHI Corporation, a distributor of various beauty products, was authorized to issue 10,000 6%, P100 par preference shares and 40,000 P50 par ordinary shares. During its first year of operations, it engaged in the following selected transactions: January 5 January 15 February 10 February 20 Issued 10,000 ordinary shares at par for cash. Issued 2,500 preference shares at par for cash. Paid P6,000 cash for costs incurred in forming and organizing a corporation. Received subscription to 20,000 ordinary shares at P60 per share together with the 40% down payment. Received subscription to 4,000 preference shares at P105 per share together with the 40% downpayment. Received 20% of the subscription price on Feb 20 transaction. Received the balance of the subscription price in March 25 transaction and issued the stock certificate. March 25 August 20 September 25 October 10 December 31 Issued 4,000 ordinary shares for equipment with a fair value of P240,000. Closed the P300,000 credit balance of the income summary to retained earnings.

GHI Corporation, a distributor of various beauty products, was authorized to issue 10,000 6%, P100 par preference shares and 40,000 P50 par ordinary shares. During its first year of operations, it engaged in the following selected transactions: January 5 January 15 February 10 February 20 Issued 10,000 ordinary shares at par for cash. Issued 2,500 preference shares at par for cash. Paid P6,000 cash for costs incurred in forming and organizing a corporation. Received subscription to 20,000 ordinary shares at P60 per share together with the 40% down payment. Received subscription to 4,000 preference shares at P105 per share together with the 40% downpayment. Received 20% of the subscription price on Feb 20 transaction. Received the balance of the subscription price in March 25 transaction and issued the stock certificate. March 25 August 20 September 25 October 10 December 31 Issued 4,000 ordinary shares for equipment with a fair value of P240,000. Closed the P300,000 credit balance of the income summary to retained earnings.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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