ASSIGNMENT: PLEASE USE SHORT BOND PAPER. SUBMISSION IS ON THURSDAY March 7, 2019.

THE FOLLOWING SELECTED TRANSACTIONS TOOK PLACE AT THE NEWLY FORMED PROVIDENCE
CORPORATION:
AUG. 1 RECEIVED AUTHORIZATION FROM THE SEC TO ISSUE 50,000 PREFERENCE SHARES P100
PAR VALUE AND 50,000 ORDINARY SHARES, P20 PAR VALUE.
AUG. 2 RECEIVED SUBSCRIPTION FOR PREFERENCE SHARES AT P120 PER SHARE FROM THE
FOLLOWING:
EMILIO 5,000 SHARES
BONIFACIO 6,000
RIZAL 4,000
A DOWNPAYMENT OF 30% WAS RECEIVED.
AUG. 4 RECEIVED SUBSCRIPTION FOR ORDINARY SHARES AT P30 PER SHARE FROM THE
FOLLOWING:
JOSEFA 100,000 SHARES
PILAR 75,000 SHARES
A DOWNPAYMENT OF 25% WAS RECEIEVED.
AUG. 30 THE SUBSCRIBERS OF PREFERENCE SHARES PAID ANOTHER 30% OF THEIR
SUBSCRIPTIONS.
AUG. 31 JOSEFA PAID HER SUBSCRIPTION IN FULL AND SHARES OF STOCK WERE ISSUED TO HER.
PILAR PAID THE 40% OF HER SUBSCRIPTION.
SEPT. 21 EMILIO AND BONIFACIO PAID THE BALANCE OF THEIR SUBSCRIPTIONS AND SHARES OF
STOCK WERE ISSUED TO THEM.
SEPT. 21 RIZAL OFFICIALLY INFORMED THE OFFICIALS OF THE CORPORATION THAT HE WOULD
NOT BE ABLE TO PAY THE BALANCE OF HIS SUBSCRIPTION CONTRACT. THUS THE
SUBSCRIPTION WAS DECLARED DELINQUENT AND WAS OFFERED FOR SALE FOR
AUCTION.
SEPT. 28 RECEIVED PAYMENT FROM THE HIGHEST BIDDER AND SHARES OF STOCK WERE
SUBSEQUENTLY ISSUED.
SEPT. 30 PILAR PAID THE BALANCE OF HER SUBSCRIPTION AND SHARES OF STOCK WERE ISSUED
TO HER.
REQUIRED:
1. PREPARE THE JOURNAL ENTRIES TO RECORD THE PRECEDING TRANSACTIONS.
2. PREPARE THE STOCKHOLDERS’ EQUITY.