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. Example: 1. Issued 100 common shares, no par for P20,000. Cash Common Stock, no par 20,000 20,000

2. Issued 100 common shares no par but with stated value of P10 for P20,000. Cash Common Stock, P5SV APIC-no par 20,000 10,000 10,000

DELINQUENT STOCKS 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 auction. d. The Highest Bidder is the person who bids for the least the number of shares and paid the subscription balance and other expenses. Example: 1. Received subscriptions for 2,000 common shares for P30,000. Par value of the stock is P10. 2. Collected P12,000 form the subscriber 3. After 30 days notice the subscriber failed to settle the balance and the stocks were sold at public auction. 4. Paid the advertising expenses amounting to P1,200. 5. The highest bidder bids for 1650 shares and paid the amount due. Subscription Receivable Common Subscribed common Stock APIC-Common 30,0000 20,000 10,000 12,000 18,000

Cash 12,000 Subscription Receivable Common Receivable form Highest Bidder 18,000 Subscription Receivable Common Receivable form Highest Bidder 1,200 Subscription Receivable Common Cash 19,200 Receivable form Highest Bidder Subscribed common Stock Common Stock 20,000

1,200 19,200 20,000

TREASURY STOCK 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. Transactions: Common stock P50 par APIC common Retained Earnings 1. Reacquired 500 common shares at P60 per share 2. Sold 100 treasury shares at P60 per share 3. Sold 100 treasury shares for P10,000. 4. Sold 100 treasury shares at P40 per share 5. Sold 100 treasury shares at P30 per share

P500,000 100,000 200,000 Treasury stock Cash Cash Treasury stock Cash Treasury stock APIC-Treasury Stock Cash APIC-Treasury Stock Treasury stock Cash APIC-Treasury Stock Retained Earnings Treasury stock Cash Retained Earnings Treasury stock 30,000 30,000 6,000 6,000 10,000 6,000 4,000 4,000 2,000 6,000 3,000 2,000 1,000 6,000 500 100 600

5. Sold 10 treasury shares at P50 per share

6. Mr. Cruz donated 50 common shares to the corporation. 7. Sold donated shares for P5,000.

Retained Earnings 5,400 Appropriated For Treasury Stock 5,400 Appropriation for unsold treasury stock. Memo Entry: Received 20 common shares from Mr. Cruz as donation. Cash 5,000 APIC-Donated Stock 5,000