Exercise 8 -2 (Issuance of Par Value Share Capital for Cash, Services, and Non-cod Assets) The Honesty Corporation was organized on April 1, 2014 with authorized share capital 500,000 ordinary shares,...

Extracted text: Exercise 8 -2 (Issuance of Par Value Share Capital for Cash, Services, and Non-cod Assets) The Honesty Corporation was organized on April 1, 2014 with authorized share capital 500,000 ordinary shares, par value of P20. Thereafter, the following transactions tod place: April 1 The incorporators acquired 200,000 shares at P36 per share. 25 Issued 5,000 shares for the services rendered by the lawyer during the perid of incorporation. The fair value of such services is P150,000. In al Мay 28 Issued 15,000 shares in exchange for equipment valued at P400,000. Instructions: Prepare journal entries to record authorized share capital and the subsequet transactions assuming the corporation uses the: a. memorandum entry method b. journal entry method