Question

and Reporting 2 Chapter 5:Corporation: Org'n & Share Trx Name: Subject and section: Score: Professor Exercise 5.5 Sunrise Corporation, a food company, was established on January 2.2018. It is authorized to issue 100,000 shares of 6%, P50 par value preference shares, and 600,000 shares of no par value ordinary shares with a stated value of P5 per share. It made the following share transactions during the year. Issued 120,000 ordinary shares for cash at P6 per share. Feb. 12 Mar. 2 Issued 30,000 preference shares at par for cash. Mar. 24 Issued 100,000 ordinary shares for a piece of land as future building site. The asking price for the land was P700,000. The fair value was P600,000. Issued 200,000 ordinary shares for cash at P7 per share. Apr. 18 Nov. 15 Issued 10,000 preference shares for cash at P54 per share. Required: A Journalize the foregoing transactions. Depare the share capital section of the stockholders equity as of December 31, 2018.

Answer 1

A	Date	Accounst titles & Explanation	Debit	Credit
	Feb 12	Cash	720,000
		Common stock		720,000
	Mar 2	Cash	1,500,000
		Preferred stock		1,500,000
	Mar 24	Land	600,000
		Common stock		600,000
	Apr 18	Cash	1,400,000
		Common stock		1,400,000
	Nov 15	Cash	540,000
		Preferred stock		500,000
		Additional Paid In capital - Preferred Stock		40,000
B	Stockholders' equity
	Paid-in capital
	Capital stock
	Common stock, no par value, 600,000 shares authorized,
	420,000 shares issued and outstanding		2,720,000
	Preferred stock, P50 par value, 100,000 shares authorized,		2,000,000
	40,000 shares issued and outstanding
	Additional paid-in capital - Preferred Stcok		40,000
	Total paid-in capital		4,760,000