Illustrative Problem - Slides #29 & 30 Powerpoint Slides

2-Jan Subscriptions Receivable

Subscribed Common Stock
Cash

Php5,000,000.00
Php5,000,000.00
Php2,500,000.00

Subscriptions Receivable

Php2,500,000.00

15-Jan Subscriptions Receivable

Php360,000.00
Subscribed Common Stock
Additional Paid In Capital - Common
Cash

Php300,000.00
Php60,000.00

Php108,000.00
Subscriptions Receivable

15-Feb Cash

Php108,000.00
Php126,000.00

Subscriptions Receivable

Php126,000.00

28-Feb Subscriptions Receivable

Php1,020,000.00
Subscribed Preferred Stock
Additional Paid in Capital - Preferred
Cash

Php1,000,000.00
Php20,000.00

Php900,000.00
Subscriptions Receivable

15-Mar Cash

Php900,000.00
Php126,000.00

Subscriptions Receivable
Subscribed Common Stock
Common Stock
31-Mar Cash

Php126,000.00
Php300,000.00
Php300,000.00
Php120,000.00

Subscriptions Receivable
Subscribed Preferred Stock
Preferred Stock

Php120,000.00
Php1,000,000.00
Php1,000,000.00

15-Apr Building
Php210,000.00
Common Stock
Additional Paid in Capital - Common

Php200,000.00
Php10,000.00

30-Apr Property, Plant and Equipment

Php520,000.00
Preferred Stock
Additional Paid in Capital - Preferred

Php500,000.00
Php20,000.00

1-May Organization Cost

Preferred Stock

Php25,000.00
Php25,000.00

2-Jan
15-Jan
28-Feb

Bal

15-Mar

Subscriptions Receivable
Php5,000,000.00 Php2,500,000.00
Php360,000.00
Php108,000.00
Php1,020,000.00
Php126,000.00
Php900,000.00
Php126,000.00
Php120,000.00
###
Subscribed Common Stock
Php300,000.00 Php5,000,000.00
Php300,000.00
### Bal

2-Jan
15-Jan
15-Feb
28-Feb
15-Mar
31-Mar

2-Jan
15-Feb

Cash
2-Jan
15-Jan
15-Feb
28-Feb
15-Mar
31-Mar
Bal

Php2,500,000.00
Php108,000.00
Php126,000.00
Php900,000.00
Php126,000.00
Php120,000.00
###
Additional Paid in Capital - Common
Php60,000.00
Php10,000.00
Php70,000.00 Bal

31-Mar

Subscribed Preferred Stock

Php1,000,000.00 Php1,000,000.00
0 Bal
Additional Paid in Capital - Preferred
Php20,000.00
Php20,000.00
Php40,000.00 Bal
Preferred Stock
Php1,000,000.00
Php500,000.00
Php25,000.00
### Bal

15-Apr

Building
Php210,000.00

28-Feb

28-Feb
30-Apr

31-Mar
30-Apr
1-May

Bal

30-Apr
Bal

1-May
Bal

Php210,000.00
Property Plant and Equipment
Php520,000.00
Php520,000.00
Organization Cost
Php25,000.00
Php25,000.00
Common Stock
Php300,000.00
Php200,000.00
Php500,000.00 Bal

15-Mar
15-Apr

Moon Corporation
Balance Sheet (or Statement of Financial Position)
As of May 31, 2013
Cash
Subscriptions Receivable
Organization Cost
Property Plant and Equipment
Building
Total Assets

Capital Stock
Preferred Stock
Common Stock
Subscribed Common Stock
Additional Paid in Capital
Preferred
Common
Total Stockholder's Equity
Additional Notes

Stockholder's Equity is composed of the following:

1. Contributed Capital - Capital contributed by the investors
a. Legal Capital - amount equal to the aggregate par value of all issued par value sh
b. Additional Paid in Capital - excess over par (or stated value in case of no-par share
2. Retained Earnings - reflects the net accumulated profits earned since the time of its incorpor
a. Appropriated - part of Retained Earnings that is restricted for a specific purpose (e
b. Unappropriated - part of Retained Earnings that is not restricted
Moon Corporation
1. Contributed Capital
Php7,135,000.00
a. Legal Capital
Php7,025,000.00
b. APIC
110,000.00
2. Retaned Earnings - No Information given on Net Income/Retained Earnings

Php3,880,000.00
2,500,000.00
25,000.00
210,000.00
520,000.00
###

Php1,525,000.00
500,000.00
5,000,000.00
40,000.00
70,000.00
###

ar value of all issued par value shares (and subscribed) or the aggregate of the cash or consideration received f
ated value in case of no-par shares)
rned since the time of its incorporation (first year of operations, Retained Earnings = Net Income)
estricted for a specific purpose (e.g. Plant expansion, treasury stock)
is not restricted

tained Earnings

or consideration received for all issued no par shares.

Net Income)