Scribd
Upload
37 views

Abo SW Finals

The document compares the memorandum method and journal entry method for recording share capital transactions. It provides an example company that issues shares in six transactions, recording the details of each transaction under both methods. It then provides a summary of the company's shareholder's equity under the journal entry method, including totals for share capital, share premium, and total equity.

Uploaded by

Erika Meru
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
37 views

Abo SW Finals

The document compares the memorandum method and journal entry method for recording share capital transactions. It provides an example company that issues shares in six transactions, recording the details of each transaction under both methods. It then provides a summary of the company's shareholder's equity under the journal entry method, including totals for share capital, share premium, and total equity.

Uploaded by

Erika Meru
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Memorandum Method Journal Entry Method

1 a. The company was authorized to issue share capital of P3,000,000 Unissued share capital
divided into 100,000 shares with par value of P30 per share. Authorized share c

b. Cash 187,500 Cash


Subscription receivable 562,500 Subscription receivable
Subscribed share capital 750,000 Subscribed share c

c. Cash 225,000 Cash


Subscription receivable 225,000 Subscription receiv

Subscribed share capital 300,000 Subscribed share capita


Share capital 300,000 Unissued share ca

d. Cash 600,000 Cash


Share capital 450,000 Unissued share ca
Share premium 150,000 Share premium

e. Subscriptions receivable 500,000 Subscriptions receivable


Subscribed share capital 300,000 Subscribed share c
Share premium 200,000 Share premium

f. Cash 500,000 Cash


Subscription receivable 500,000 Subscription receiv

Subscribed share capital 300,000 Subscribed share capita


Share capital 300,000 Unissued share ca
Journal Entry Method
Unissued share capital 3,000,000
Authorized share capital 3,000,000

187,500
Subscription receivable 562,500
Subscribed share capital 750,000

225,000
Subscription receivable 225,000

Subscribed share capital 300,000


Unissued share capital 300,000

600,000
Unissued share capital 450,000
Share premium 150,000

Subscriptions receivable 500,000


Subscribed share capital 300,000
Share premium 200,000

500,000
Subscription receivable 500,000

Subscribed share capital 300,000


Unissued share capital 300,000
Entity A
Shareholder's Equity
As of the end of the period

Share capital:
Share capital, at par P30 1,050,000
Subscribed share capital 450,000
Less: Subscriptions Receivable 337,500 112,500
Share premium 350,000
Total Shareholder's Equity 1,512,500

2) Share premium (2,000 x P50) 100,000


Less: Share issuance cost 8,000
Net share premium 92,000

Cash 120,000
Share capital 20,000
Share premium 100,000

Share premium 8,000


Cash 8,000

3) Treasury shares

You might also like