SHAREHOLDER'S EQUITY Norm Bal.

Ordinary Share
Share Capital (Issued Sh x Par Value) XX Cr. Preference Share
(+) Subscribed Share Capital (Subsribed Sh x Par Value) XX Cr.
(+) Share Premium XX Cr.
(-) Subscription Receivable (XX) Dr.
(+/-) Unappropriated Retained Earnings XX(XX) Cr. Earnings that can be dis
(+) Appropriated Retained Earnings XX Dr. Earnings that cannot be
(-) Treasury Share Capital (Treasury Sh x Cost of Purch) (XX) Cr.
TOTAL SHAREHOLDER'S EQUITY XXX

TRANSACTIONS Cash ORDER OF PRIORITY

1 Issuance of Shares Property 1. Fair Value of Asset / Service Received
Service 2. Fair Value of Shares Issued
3. Par Value of Shares Issued
2 Subscription
3 Deliquent Share Close Net Income to R
4 To close Net Income (Net Loss) to Retained Earnings Income&Expense Summary
5 Dividends (in form of Cash) Retained Earnings
6 Reacquire / Reissuance (Treasury Shares)

LEGAL CAPITAL
Share Capital XX
(+) Subscribed Share Capital XX
(-) Treasury Share Capital (XX)
(-) Subsription Receivable (xx)
LEGAL CAPITAL XXX
NOTE: If there's a Subscription Receivable and is collectible in one year,
you need to deduct it.

CONTRIBUTED CAPITAL /PAID IN CAPITAL

Share Capital XX
(+) Subscribed Share Capital XX
(+) Share Premium XX
(-) Subsription Receivable (xx)
CONTRIBUTED CAPITAL XXX
 Ordinary Share
Preference Share

Earnings that can be distributed to shareholders Voluntarily basis

Earnings that cannot be distributed to shareholders Contractual basis
Legal basis

PRIORITY 10,000 shares issued

Service Received 150,000
15 per share
10 per share

Close Net Income to RE Close Net Loss to RE

xpense Summary xxx Retained Earnings xxx
Retained Earnings xxx Income&Expense Summary
E

xxx
 ABC Corp, a newly registered corporation had the following transactions during the year:
1 On January 1, 2019 the SEC authorized ABC Corporation to issue 200,000 shares
with Par Value of P100 per share
Memorandum Entry: Authorized 200,000 shares with par value of P100

2 ABC received subscription of 25,000 shares equal to par value.

Subscription receivable 2,500,000.00
Subscribed Share Capital 2,500,000.00

3 The entity collected 25% of the above subscription

Cash 625,000.00
Subscription receivable 625,000.00

4 Received full payment for 25,000 shares originally subscribed. The entity issued the share certificate
for 25,000 which were fully paid.
Cash 1,875,000.00
Subscription Receivable 1,875,000.00

Subscribed Share Capital 2,500,000.00

Share Capital 2,500,000.00
5 ABC received subscription of 5,000 shares for P105 per share.
Subscription Receivable 525,000.00
Subscribed Share Capital 500,000.00
Share Premium 25,000.00

6 The entity collected 50% on the above subscription

Cash 262,500.00
Subscription Receivable 262,500.00

7 Received full payment for 5,000 shares originally subscribed. The entity issued the share certificate
for 5,000 shares which were fully paid.
Cash 262,500.00
Subscription Receivable 262,500.00

Subscribed Share Capital 500,000.00

Share Capital 500,000.00

8 ABC issued 12,500 shares for cash at par value.

Cash 1,250,000.00
Share Capital 1,250,000.00

9 ABC issued 2,500 shares for P107 per share

Cash 267,500.00
Share Capital 250,000.00
 Share Premium 17,500.00

10 ABC issued 3,000 shares for 318,000

Cash 318,000.00
Share Capital 300,000.00
Share Premium 18,000.00

11 ABC issued 5000 shares in exchange of Land with fair value of P550,000.
The fair value of shares issued is P109.
Land 550,000.00
Share Capital 500,000.00
Share Premium 50,000.00

12 ABC issued 1,000 shares in exhange for equipment. The fair value of shares is P102
Equipment 102,000.00
Share Capital 100,000.00
Share Premium 2,000.00

13 ABC issued 1,500 shares to lawyers for legal services rendered in forming the corporation.
The fair value of such services is reliably determined at P155,000.
The fair value of shares issued is P103.
Legal Service 155,000.00
Share Capital 150,000.00
Share Premium 5,000.00

14 ABC issued 500 shares to CPAs for accounting services rendered in forming the corporation
Acctg Service 50,000.00
Share Capital 50,000.00

15 ABC received subscription for 25,000 shares at P110. The corporation received 50% downpayment
Cash 1,375,000.00
Subscription Receivable 1,375,000.00
Subscribed Share Capital 2,500,000.00
Share Premium 250,000.00

16 Received the balance due from subscriber of 20,000 shares. The entity issued share certificate
for 20,000 shares which were fully paid.
Cash 1,100,000.00 (1,375,000 X 20,000/25,000 shares)
Subscription Receivable 1,100,000.00

Subscribed Share Capital 2,000,000.00 (20,000 sh x 100 par value)

Share Capital 2,000,000.00

17 Mr. Valientes, a subscriber of the remaining 5,000 shares failed to pay his obligation so his
subscription was declared deliquent.
 No entry required as the shares were declared as deliquent only.

18 The offer price of the following bidders for the unpaid subscription plus P10,000 for expense
paid by the corporation in relation to the auction sale is presented below:
Joven 4,000 shares HIGHEST BIDDER
Fritz 4,500 shares
JJ 4,300 shares

Receivable from highest bidder 285,000.00

Subscription Receivable 275,000.00
Cash 10,000.00

19 The highest bidder pays the offer price

Cash 285,000.00
Receivable from highest bidder 285,000.00

20 The Corporation issued the 5,000 shares. Joven received the 4,000 shares while Valientes
received 1,000 shares.
Subscribed Share Capital 500,000.00 (5000 shares x 100 par value)
Share Capital 500,000.00
 SHAREHOLDER'S EQUITY
Share Capital (Issued Sh x Par Value) 8,100,000.00
(+) Subscribed Share Capital (Subsribed Sh x Par Value) -
(+) Share Premium 367,500.00
(-) Subscription Receivable -
(+/-) Unappropriated Retained Earnings -
(+) Appropriated Retained Earnings -
(-) Treasury Share Capital (Treasury Sh x Cost of Purch) (-)
TOTAL SHAREHOLDER'S EQUITY 8,467,500.00

OUTSTANDING SHARES 81,000

25,000
5000
re certificate 12500
2500
3000
5000
1000
1500
500
25000

Outstanding Shares 81,000.00

e certificate
wnpayment

000/25,000 shares)
00 par value)
8,100,000.00
-
 LEGAL CAPITAL CONTRIBUTED CAPITAL
Share Capital 2,000,000.00 Share Capital
(+) Subscribed Share Capital 500,000.00 (+) Subscribed Share Capital
(-) Treasury Share Capital 800,000.00 (+) Share Premium
(-) Subsription Receivable (-) Subsription Receivable
LEGAL CAPITAL 1,700,000.00 CONTRIBUTED CAPITAL

SHAREHOLDER'S EQUITY Issued Shares

Share Capital 2,000,000.00 Unissued Shares
(+) Subscribed Share Capital 500,000.00 Outstanding Shares
(+) Share Premium 350,000.00 Subscribed Shares
(-) Subscription Receivable 100,000.00
(+) Retained Earnings 1,800,000.00
(-) Treasury Share Capital 800,000.00
TOTAL SHAREHOLDER'S EQUITY 3,750,000.00

0
RIBUTED CAPITAL
2,000,000.00
500,000.00
350,000
100,000.00
2,750,000.00

20000
80000
10000 NOTE: Shares na hawak ng shareholders, so yung Treasury shares
5000 (acquired ulit ni Corporation) kaya hindi na sya part ng Outstanding shares.
1 Cash 137,500.00
Subscription Receivable 137,500.00
Subscribed Share Capital 250,000.00
Share Premium 25,000.00 (+)
(+)
2 Cash 82,500.00 (-)
Subscription Receivable 82,500.00 (+)
(-)
Subscribed Share Capital 150,000.00
Share Capital 150,000.00

3 Cash 142,500.00
Share Capital 125,000.00
Share Premium 17,500.00

4 Cash 168,000.00
Share Capital 150,000.00
Share Premium 18,000.00

5 Land 300,000.00
Share Capital 250,000.00
Share Premium 50,000.00

6 Acctg Service 31,500.00

Share Capital 25,000.00
Share Premium 6,500.00
 SHAREHOLDER'S EQUITY
Share Capital 700,000.00
Subscribed Share Capital 100,000.00 (5000*50*2000/5000)
Share Premium 117,000.00
Subscription Receivable 55,000.00 (5000*50%*55*2000/5000)
Retained Earnings
Treasury Share Capital
TOTAL SHAREHOLDER'S EQUITY 862,000.00
1 Cash 2,750,000.00
Subscription Receivable 8,250,000.00 Subscribed Share Capit
Subscribed Share Capital 10,000,000.00 Share Premium
Share Premium 1,000,000.00 Subscription Receivabl

2 Cash 4,125,000.00
Subscription Receivable 4,125,000.00

Subscribed Share Capital 5,000,000.00

Share Capital 5,000,000.00

3 No entry as the 20,000 shares were declared as delinquent only.

4 Receivable from Highest Bidder 1,665,000.00

Subscription Receivable 1,650,000.00
Cash 15,000.00

5 Cash 1,665,000.00
Receivable from Highest Bidder 1,665,000.00

Subscribed Share Capital 2,000,000.00

Share Capital 2,000,000.00
Subscribed Share Capital 7,000,000.00 (5,000,000*30000/50000)
Share Premium 1,000,000.00
Subscription Receivable 2,475,000.00 (30000*110*75%)
 ABC Corporation has the following operations:
Share Capital, P100 par value 1,000,000.00 1
Share Premium 650,000.00 2
Subscribed Share Capital 300,000.00 3
Subscription Receivable 150,000.00
Unappropriated Retained Eanings 1,050,000.00

During the period, ABC Co transactions are presented below: Issued Shares
1 Reacquired 5,000 shares at P110 per share 10,000
2 Reissue 2,000 shares at P115 per share 1 10,000
3 Reissue 1,500 shares at P102 per share 2 10,000
4 Retire 1,000 treasury shares 3 10,000
4 9,000
JOURNAL ENTRIES
1 Treasury Share Capital 550,000.00 Unapp Retained Earnings
Cash 550,000.00 Appropriated Retained Earnings

2 Cash 230,000.00 Appropriated Retained Earnings

Treasury share Capital 220,000.00 Unapp Retained Earnings
Share Premium-Treasury Share 10,000.00

3 Cash 153,000.00 Appropriated Retained Earnings

Share Premium- Treasury Share 10,000.00 Unapp Retained Earnings
Retained Earnings - Unappro. 2,000.00
Treasury Share Capital 165,000.00
NOTE: It happens when selling treasury below COST (not efficient)

4 Share Capital 100,000.00 Appropriated Retained Earnings

Share Premium 10,000.00 Unapp Retained Earnings
Treasury Share Capital 110,000.00
Unearned Retained Earnings = Treasury Sh
URE
TRC
 Order of Priority
Reissuance Retirement
Share Premium - TS Share Premium - TS
Retained Earnings Share Premium
Retained Earnings

Outstanding Shares Treasury Shares

10,000
5,000 5,000
7,000 3000
8,500 1,500
8,500 500

ained Earnings 550,000.00

ropriated Retained Earnings 550,000.00

ed Retained Earnings 220,000.00

pp Retained Earnings 220,000.00

ed Retained Earnings 165,000.00

pp Retained Earnings 165,000.00

ed Retained Earnings 110,000.00

pp Retained Earnings 110,000.00

Retained Earnings = Treasury Share Capital

550,000.00
495,000.00 550,000.00
55,000.00 Unissued Treasury Shares of 500