Professional Documents
Culture Documents
The rexidel corporation on November I had its article of incorporations had its article of
incorporations approved by the Philippines sec it authorized the company to issue 750,000 shares with
50 par value on that date, five incorporation subscribed to 262,500 shares at par as follows
32. Forever company uses journal entry method in recording share capital transaction. on January 1
2020 the company authorized to issue 150,000 shares with a par value of 10. What would be the correct
entry for this transaction?
33. Gogalor co. was incorporated on January 1 2020 upon inspection of its stock and transfer book the
following transaction affecting its shares were noted
34. flakes inc was incorporated on January 1, 2020, information about its authorized shares is shown
below
35. Denden company was organized on January 1 2020 at which date it issued 300,000 ordinary shares
of 6 par value at 13 per share. The following are the additional occurred during the year;
40. the journal entry to record the declaration of large bonus issue includes:
A debit to retained earnings for the par value of the share to be distributed.
41.assuming the following information for jewong co. at December 31, 2020
12% cumulative and non participating preference shares 10 par, 15,000 shares issued and outstanding
The company declared and paid cash dividend amounting to 30,000 for the year. At the beginning of the
year undeclared dividends amounted 13,500. What is the amount of dividend paid to the company’s
ordinary shareholders
42. chadwick Inc. declared 15% share dividend on its 15,000 issues and outstanding share of 10 par
value ordinary shares, which had a fair market value of 5 per share before the share dividend was
distributed 90 dyas after the declaration date. The company’s current liability will increase by how
much?
43. Raymond company has 7,500 ordinary shares in its par value of 100 and cost of 120. The shares were
originally issued for 110 per share. The account “share Premium treasury shares” had a balance of
30,000. At the end of 2020 raymond decided to retire its treasury shares. Which of the following is
incorrect?
44. in 2019, jed incorporated issued 75,000 of 10 par value per share. In 2020, the entity reacquired
3,000 shares at 150 per share and immediately cancelled these 3,000 shares. In relation with the
retirement of shares, what amount should be debited to share premium and retained earnings?
45. sundae company has total shareholders equity of 2,025,000 including retained earnings of 525,000.
The company has only 712,500 cash balance. The maximum amount of cash dividend that the company
can declare and pay is?
46. Kimberly’s outstanding share capital at December 31, 2020 compromised the following:
45,000 shares of 10% cumulative preference share capital, 5% participating par value of 10 per
share
300,000 shares of ordinary shares capital, par value of 1 per share
On December 31, 2020, TLW co. declared dividends of 150,000 . what is the amount of dividend
payable to the company’s ordinary shareholders?
47. ECE corporation had the following shareholders account before the declaration of dividend
Market value of the ordinary share on this date is 40 per share. The company declared and distributed
10% share dividend. How much is the share premium after issuance of bonus shares?
48. guimba corporation has the following data on stock issued and outstanding on December 31, 2020:
Dividend were in arrears for 2 years excluding the current year. The board of direct declared 300,000
cash dividend. Assume that the preferred share is non cumulative and participating. The ordinary
dividend per share is?
49. bitoin company had the following classes of stock outstanding at December 31, 2020
Dividend on preference shares have been in arrears for 2018 and 2019. On December 31, 2020, total
cash dividends of 9,000,000 was declared . what is the amount of dividend payable to the 12%
preference shares?
50. JBL company’s outstanding share capital at December 32, 2020 consisted of
45,000 shares of 5% cumulative preference share, 10 par fully participating as to dividend. No dividend
were in arrears
On December 31 2020, JBL declared dividend of 150,000. What was the amounts of dividend payable to
preferred shareholders?
1. a. False, True
2. c. False, True
3. d. Fair value of the non-cash asset received
4. b. Charged to an expense account
5. c. No entry is made, except if a down payment is collected
6. D. Sale for cash of share capital.
7. A. No effect, no effect
8. C. Sale of the treasury shares at an amount higher than the acquisition cost
9. C. The legal nominal value assigned to the share
10.B. The corporation will issue a proportionate number of shares to the defaulting
subscriber.
11. D. none of the choices provided
12 C. Land 6,750,000
Building 2,250,000
Share Capital 6,000,000
Share Premium 3,000,000
13. C. Professional expenses 400,000
Share capital 300,000
Share premium 100,000
14. D. P4,000,000
15. b. 700,000
16. A. P2,110,000
17. A. P162,000
18. D. P0
19. B. 52,500
20. c. Cash 187,500
Share premium - treasury 12,000
Retained earnings 6,750
Treasury shares 206,250
21. A. Ordinary shares and Share Premium -ordinary will be debited by P750,000 and
P75,000, respectively, as a result of the retirement of treasury shares.
22. a. 9,000 shares to Marilou and 6,000 shares to Valdez
23. d. P825,000
24. b. P1,227,000
25. c. P217,500,000
26. D. 22,500 shares; 22,500 shares
27. B. P4,350,000
28. C. 6,000 shares; P104
29. a. P78,000
30. d. P420,000 and 0
31. 25%
32. unissued 1,500,000
Authorized 1,500,000
33. 375,000
34. ? 5,925,000
35.? 4, 578,000
36. mutual agency
37. Shares of stock
38. To increase the shares outstanding
39. decrease No effect
40. debit to retained earnings for the par value of the shares
41. ? 13,500
42. 11,250
43. ordinary shares and share premium
44. ? 270,000 and 150,000
45. 525,000
46 ? 82, 500
47. 2,610,000 pero wala sa given (2,340,000) yan nalang
48. ? 1
49. ? 2,040,000
50. ? 90,000
1 a 11 d 21 a
2 c 12 c 22 a
3 d 13 c 23 d
4 b 14 d 24 b
5 c 15 b 25 c
6 d 16 a 26 d
7 a 17 a 27 b
8 c 18 d 28 c
9 c 19 b 29 a
10 b 20 c 30 d