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Question - Gabayan Inc. has been authorized to issue 125,000 shares of P10 par ordinary shares. The following 2019 transactions relate to the initial issuance of Gabayan share:
Feb. 1 Gabayan sold subscriptions for 25,000 shares of stocks. The shares have a subscription price of P15 per share. One-third of the subscription price was received as a down payment.
Feb. 15 Gabayan sold 10,000 shares for P180,000.
Mar. 1 An installment amounting to one-third of the subscription price was received.
Mar. 19 Gabayan exchanged 200 shares of stocks for a new two-way radio system having a fair market value of P3,800.
Apr. 1 The final one-third of the subscription price was received and the share issued.
Required - Prepare journal entries to record the transactions. Use memorandum method.
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