ENTRIES - (Balance Sheets)

1) Establish capital
Authorized Capital Stock 30,000,000
Subscribed Capital Stock 10,000,000
Paid-up Capital Stock 10,000,000
DR # Cash 10,000,000
CR # Capital (Ordinary Shares) 10,000,000
To establish capital (issuance of ordinary shares)
#
2) Purchases of Land - 2,000 sq. meters
DR # Land
CR # Donated Capital
To take cost of land donated from Kristeta's property
#
3) Cost of Land Improvements - Landscape P4,320,000 on account.
DR # Land Improvements 3,801,600
VAT-Input (12% of cost of landscape) 518,400
CR # Accounts Payable - DURACON Corporation 3,672,000
Cash - (15% down payment of P4,320,000) 648,000
To take up cost of landscape
#
4) Cost of Building - 8,750,000 on account
DR # Building 7,700,000
VAT- Input (12% of cost of building) 1,050,000
CR# Accounts Payable - DURACON Corporation 7,875,000
Cash - 10% mobilization fee of P8,750,000 875,000
To take up cost of building
#
5) Purchase of Office Equipment for P300,000
DR# Office Equipment 264,000
VAT-Input (12% of cost of equipment) 36,000
CR# Cash 300,000
To record purchase of equipment
#
6) Purhcase of cabinets and sofas for P100,000
DR# Furnitures and Fixtures 88,000
VAT-input(12% of cost of furnitures) 12,000
CR# Cash 100,000
To record purchase of furnitures
#
7) Purchase of service car on account for P800,000
DR# Vehicles 704,000
VAT-Input (12% of cost of vehicles) 96,000
CR# Accounts Payable - Toyota 640,000
Cash - 20% downpayment 160,000
To take up cost of service vehicle
#
@ ___/ sq. meters = (amount)