ACCTG 101

FINAL QUIZ

1. SECERN TO SEPARATE Co. started operations on January 1, 2021. Its authorized

capitalization is ₱2,000,000 divided into 20,000 shares with par value per share of
₱100. SECERN Co. receives cash subscriptions for 5,000 shares at ₱120 per share.
On January 31, 2021, SECERN receives subscription for 2,000 shares at ₱160 per
share.

Requirement: Provide the necessary journal entries.

Jan. 1, 2021
Cash 600,000
Share Capital 500,000
Share Premium 100,000
Jan. 31, 2021
Cash 320,000
Share Capital 200,000
Share Premium 120,000

2. On January 1, 2021, the statement of financial position of LABILE ADAPTABLE Co.

shows the following information:

Share capital (authorized 20,000 shares with par 1,600,000

value of ₱100)
Share premium 320,000
Retained earnings 1,080,000
Total shareholders’ equity 3,000,000

On July 1, 2021, LABILE reacquires 1,000 shares at ₱90.

Requirements: Provide the entry on July 1, 2021 and in each of the following
independent scenarios:
a. On September 1, 2021, LABILE reissues the 1,000 treasury shares at ₱90.
b. On September 1, 2021, LABILE reissues the 1,000 treasury shares at ₱140.
c. On September 1, 2021, LABILE reissues the 1,000 treasury shares at ₱60.

July 1, 2021
Treasury Share 90,000
Cash 90,000

Dr. Retained Earnings - Unrestricted 90,000

Cr. – Appropriated 90,000

a. September 01, 2021

Cash 90,000
Treasury Shares 90,000
b. September 01, 2021
Cash 140,000
Treasury Shares 90,000
Share Premium – T.S 90,000
c. Dr. Cash 60,000
Retained Earnings 30,000 Cr. Treasury Shares 90,000

3. On April 1, 2021, the board of directors of PEAL LOUD RINGING OF BELLS Co.
declared ₱50 dividends per share to shareholders of record as of April 15, 2021 for
distribution on May 1, 2021. The shareholders’ equity of PEAL as of April 1, 2021 is
as follows:

Share capital, authorized capital 20,000 shares, ₱100 par 1,600,000

Subscribed share capital 440,000
Share premium 200,000
Retained earnings 908,000
 Treasury shares (at cost of ₱120 per share) (288,000)
Other components of equity 140,000
Total shareholders’ equity 3,000,000

Requirement: Provide all the pertinent entries.

April 1, 20x1 Retained earnings or 900,000

(Date of Dividends
declaration) Cash dividends payable 900,000
April 15, 20x1
(Date of No entry
record)
May 1, 20x1 Cash dividends 900,000
(Date of payable
distribution) Cash 900,000

4. On April 1, 2021, DOLEFUL SAD Co. declared share dividends on a “1 share

dividend for every 10 shares held” basis to shareholders of record as of April 15,
2021 for distribution on May 1, 2021. The market price per share on declaration
date is ₱120. DOLEFUL’s shareholders’ equity immediately before dividend
declaration is shown below:

Share capital, authorized capital 20,000 shares, ₱100 par 1,600,000

Subscribed share capital 440,000
Share premium 200,000
Retained earnings 908,000
Treasury shares (at cost of ₱120 per share) (288,000)
Other components of equity 140,000
Total shareholders’ equity 3,000,000

Requirement: Provide all the pertinent entries.

 Retained earnings (1,800 sh. x 216,000
April 1, 20x1 P120)
(Date of Share dividends distributable / 180,000
declaration) Stock dividends payable
Share premium 36,000
April 15, 20x1
(Date of No entry
record)
May 1, 20x1 Share dividends distributable / Stock 180,000
(Date of dividends payable
distribution Share capital 180,000
5. On April 1, 2021, VELVETY SMOOTH Co. declared share dividends on a “1 share
dividend for every 5 shares held” basis to shareholders of record as of April 15,
20x1 for distribution on May 1, 2021. The par value of the shares is ₱100 while
the market price per share on declaration date is ₱120. The total outstanding
shares as of April 1, 2021 is 18,000.

Requirement: Provide all the pertinent entries.

April 1, 20x1 Retained earnings (3,600 x 360,000

(Date of P100)
declaration) Share dividends 360,000
distributable
April 15, 20x1
(Date of No entry
record)
May 1, 20x1 Share dividends 360,000
(Date of distributable
distribution) Share capital 360,000