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    Reviewer 1 Accounting

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    Rae Michael
    Amity Inc. was incorporated in January 2021 and authorized to issue 500,000 ordinary shares. Throughout 2021, Amity issued shares through stock subscriptions, issuing shares for services, exchanging shares for assets, and reacquiring treasury shares. By the end of 2021, Amity had issued shares, collected subscription payments, recognized income, and retained earnings.

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    Reviewer 1 Accounting

    Uploaded by

    Rae Michael
    351 views3 pages
    Amity Inc. was incorporated in January 2021 and authorized to issue 500,000 ordinary shares. Throughout 2021, Amity issued shares through stock subscriptions, issuing shares for services, exchanging shares for assets, and reacquiring treasury shares. By the end of 2021, Amity had issued shares, collected subscription payments, recognized income, and retained earnings.

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    Amity Inc. was incorporated in January 2021 and authorized to issue 500,000 ordinary shares. Throughout 2021, Amity issued shares through stock subscriptions, issuing shares for services, exchanging shares for assets, and reacquiring treasury shares. By the end of 2021, Amity had issued shares, collected subscription payments, recognized income, and retained earnings.

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    Download as docx, pdf, or txt
    351 views3 pages

    Reviewer 1 Accounting

    Uploaded by

    Rae Michael
    Amity Inc. was incorporated in January 2021 and authorized to issue 500,000 ordinary shares. Throughout 2021, Amity issued shares through stock subscriptions, issuing shares for services, exchanging shares for assets, and reacquiring treasury shares. By the end of 2021, Amity had issued shares, collected subscription payments, recognized income, and retained earnings.

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    of 3

    Amity Inc.

    was incorporated on January 2, 2021 and has been authorized to


    issue 500,000 shares of P10 par ordinary shares. The following 2021 transactions
    relate to the initial issuance of Amity Share.
    February 1 - Amity sold subscriptions for 25,000 shares of stock. The shares have a subscription
    price of 15 per share. 1/3 of the subscription price was the received as down payment.

    Subscription Receivable 375,000

    Subscribed Ordinary Share 250,000

    Ordinary Share Premium 125,000

    Cash 125,000

    Subscription Receivable 125,000

    March 9 - Issue 1000 shares as payment for incorporating the business for 15,000.

    Organization Expense 15,000

    Ordinary Share Capital 10,000

    Ordinary Share Premium 5,000

    April 13 - An installment amounting to 1/3 of the subscription price was received.

    Cash 125,000

    Subscription Receivable 125,000

    May 19 - Amity exchanged 200 shares of stock for a furniture having a fair market value of
    3,800.

    Furnitures 3,800

    Ordinary Share Capital 2,000

    Ordinary Share Premium 1,800


    June 3 - The final 1/3 of the subscription price once received and the shares issued.

    Cash 125,000

    Subscription Receivable 125,000

    Subscribed Ordinary Share 250,000

    Ordinary Share Capital 250,000

    July 11 - Reacquired 2,500 shares at P12 of Amity to be held in Treasury.

    Treasury Share - Ordinary 30,000

    Cash 30,000

    August 8 - Amity sold subscriptions for 25,000 shares of stock. The shares have a subscription
    price of P18 per share. No down payment was received.

    Subscription Receivable 450,000

    Subscribed Ordinary Share 250,000

    Ordinary Share Premium 200,000

    September 9 - Reissued 1,000 shares of treasury at cost.

    Cash 12,000

    Treasury Shares - Ordinary 12,000

    October 5 - Amity sold 10,000 shares for 180,000.

    Cash 180,000

    Ordinary Share Capital 100,000

    Ordinary Share Premium 80,000


    November 15 - Collected 20% of the total subscription price on August 8.

    Cash 90,000

    Subscription Receivable 90,000

    December 31 - Income at year end amounted to 250,000.

    Income Summary 250,000

    Retained Earnings 250,000

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