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NO PAR VALUE STOCK – a stock without nominal value but the amount can be fixed by the

Board of Directors by no less than P5.


1. Issued 100 common shares, no par for P20,000.

Cash 20,000
Common Stock, no par 20,000

2. Issued 100 common shares no par but with stated value of P10 for P20,000.

Cash 20,000
Common Stock, P5SV 10,000
APIC-no par 10,000

a. the subscriber was unable to pay the subscription balance.
b. The subscriber was given at 30 days by the Board of Directors to settle the
subscription balance.
c. Failure to settle, the BOD has the right to sell the delinquent shares at public
d. The Highest Bidder is the person who bids for the least the number of shares
and paid the subscription balance and other expenses.


1. Received subscriptions for Subscription Receivable –Common 30,0000

2,000 common shares for Subscribed common Stock 20,000
P30,000. Par value of the stock APIC-Common 10,000
is P10.
2. Collected P12,000 form the Cash 12,000
subscriber Subscription Receivable –Common 12,000
3. After 30 days notice the Receivable form Highest Bidder 18,000
subscriber failed to settle the Subscription Receivable –Common 18,000
balance and the stocks were sold
at public auction.
4. Paid the advertising expenses Receivable form Highest Bidder 1,200
amounting to P1,200. Subscription Receivable –Common 1,200
5. The highest bidder bids for Cash 19,200
1650 shares and paid the amount Receivable form Highest Bidder 19,200
Subscribed common Stock 20,000
Common Stock 20,000
a. recorded at cost
b. acquired through purchase or donation
c. sold at cost , above cost and below cost.
d. Sufficient retained earnings before acquiring own stocks.

Common stock P50 par P500,000
APIC common 100,000
Retained Earnings 200,000

1. Reacquired 500 common shares Treasury stock 30,000

at P60 per share Cash 30,000
2. Sold 100 treasury shares at P60 Cash 6,000
per share Treasury stock 6,000
3. Sold 100 treasury shares for Cash 10,000
P10,000. Treasury stock 6,000
APIC-Treasury Stock 4,000
4. Sold 100 treasury shares at P40 Cash 4,000
per share APIC-Treasury Stock 2,000
Treasury stock 6,000

5. Sold 100 treasury shares at P30 Cash 3,000

per share APIC-Treasury Stock 2,000
Retained Earnings 1,000
Treasury stock 6,000

5. Sold 10 treasury shares at P50 Cash 500

per share Retained Earnings 100
Treasury stock 600

Retained Earnings 5,400

Appropriated For Treasury Stock 5,400
Appropriation for unsold treasury stock.
6. Mr. Cruz donated 50 common Memo Entry: Received 20 common shares from Mr. Cruz
shares to the corporation. as donation.
7. Sold donated shares for P5,000. Cash 5,000
APIC-Donated Stock 5,000