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10.3.2.4 Elaborate 10.2 Issuance of Ordinary Shares

The document discusses the issuance of 25,000 ordinary shares by the Delgado Software Corporation. It provides the accounting entries required to record the issuance under three assumptions: 1) the shares have a P5 par value and were sold for P20 per share, 2) the shares are no-par but have a stated value of P10 with a total issue price of P850,000, and 3) the shares are no-par with no stated value and were issued at P25 per share.

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MARY ROSE
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331 views3 pages

10.3.2.4 Elaborate 10.2 Issuance of Ordinary Shares

The document discusses the issuance of 25,000 ordinary shares by the Delgado Software Corporation. It provides the accounting entries required to record the issuance under three assumptions: 1) the shares have a P5 par value and were sold for P20 per share, 2) the shares are no-par but have a stated value of P10 with a total issue price of P850,000, and 3) the shares are no-par with no stated value and were issued at P25 per share.

Uploaded by

MARY ROSE
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Elaborate 10.

2 - Issuance of Ordinary Shares

The Delgado Software Corporation is authorized to issue 80,000


ordinary shares. During the current year, the corporation issued
25,000 shares.
Required:
Prepare the required entry to record the issuance of ordinary shares
under each of the following assumptions:
The shares have a P5 par value and were sold for P20 per share.
The shares are no-par but have a stated value of P10. The total issue
priceshares
The was P850,000.
are no-par and have no stated value. They were issued at
P25 per share.
Date Account Title P.R.
20__
The shares have a P5 par value and were sold for P20 per share.
Cash
Ordinary Shares
Share Premium

The shares are no-par but have a stated value of P10. The total issue price wa
P850,000.
Cash
Ordinary Shares
Share Premium
OR
Cash
Ordinary Shares

The shares are no-par and have no stated value. They were issued at P25 per
Cash
Ordinary Shares
POINTS
Debit Credit 5
1
0 per share.
₱500,000 2
₱125,000 1
375,000 1

The total issue price was

₱850,000 2
₱250,000 1
600,000 1

₱850,000
₱850,000

y were issued at P25 per share.


₱625,000 2
₱625,000 1
17

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