DELINQUENT SUBSCRIPTIONS

When a subscriber fails to pay for her

subscription, even after he/she is given a
grace period his/her subscription is
declared delinquent.
The subscription is bidded out to
interested parties
The highest bidder pays the unpaid
portion of the subscription plus interest
and additional costs.
PHILIPPINE CORPORATION
The corporation is authorized to issue
1,000,000 shares at P2 per share.
Short method with bidders
1 Subsribtion receivable 20,000
Subscribed share capital 20,000
Ms. Gloria subscribed to 10,000
shares at P2 per share.
2 Cash 5,000
Subscription receivable 5,000
Ms. Gloria made partial payment
for her subscription.
3 no entry
4 Receivable from highest bidder 2,500
Cash 2,500
Incurred advertising costs for the
sale of delinquent shares
5 no entry
6 Cash 17,500
Subscription receivable 15,000
Receivable from highest bidder 2,500
The highest bidder paid the amount due
7 Sibscribed share capital 20,000
Share capital 20,000
Issued the stock certificates
Short method with no bidders
1 Subsribtion receivable 20,000
Subscribed share capital 20,000
Ms. Gloria subscribed to 10,000
shares at P2 per share.
2 Cash 5,000
Subscription receivable 5,000
Ms. Gloria made partial payment
for her subscription.
3 no entry
Advertisement expenses for delinquent
shares
6 Cash 17,500
Subscription receivable 15,000
Receivable from highest bidder 2,500
Collected ullpayment from the highest
bidder
7 Subscribed share capital 20,000
Share capital 20,000
Issuance of stock certifictes.
Short method with no bidders
4 Receivable from highest bidder 2,500
Cash 2,500
Incurred advertising costs for the
sale of delinquent shares
5 Treasury shares 17,500
Subscription receivable 15,000
Receivable from highest bidder 2,500
Corporation acquires delinquent
shares
6 Subscribed share capital 20,000
Share capital 20,000
Issuance of stock certificates
8-1

A Highest bidder - Carlo Carlo
B Eduardo's subscription 100 shares
Par value 100
Total amount of subscription P 10,000
Payment 2,000
Balance - subscription receivable P 8,000
Expenses related to delinquent
shares 1,500
Receivable from highest bidder P 9,500
C Shares issued to Eduardo 25 shares
D Shares issued to the highest bidder 75 shares
8-2

No. of Issue Amount of
shares Price subsription
Subscribed shares 200 P 52 P 10,400
Payment by Regine 100 5,200
Balance 100 P 5,200
a Shared issued to Regine 0
b Shares issued to the
corporation 200
c Treasury shares P 11,400
Subscription P 10,400
Advertising 1,000
Treasury shares P 11,400