FAR 2 Final Departmental Examination 2022

7/31/22, 5:51 PM FAR 2 Final Departmental Examination 2022
FAR 2 Final Departmental Examination

2022
Name (LN, FN, MN) *
ORGANISTA, GLENDA, RAMIREZ
Student Number *
2021-07226-MN-0
Campus/Branch *
Main
Alfonso
Bataan
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Binan
Lopez
Maragondon
San Juan
San Pedro
Sta. Maria
Sta. Rosa
Sto. Tomas
Taguig
Others
Program *
BSA
BSMA
Section *
10
Name of Accounting Teacher *
Abarquez
Balbarino
Canaon
Carreon
Chan
Corrales
De Guia
Doquenia
Fonte
Fua
Laus
Lizardo
Penaflor
Peralta
Silva
Sotto
Tallena
Vicente
Di Ako Babagsak Company has 10,000 P50-par convertible preference shares

which were originally issued at P60. Each share is convertible into 5 P7-par
ordinary shares. On August 1, 3,000 of these were converted. How much is the
resulting Share Premium-Ordinary Share from the conversion? * (2 Points)
P75,000
The shareholder’ equity of L Corp on Dec 31, 2021 follows:
10% Preference share capital P100 par, 45,000 shares P4,500,000
Ordinary share capital, P20 par, 180,000 sharesP3,600,000
Preference share premium P1,000,000
Ordinary share premium P900,000
Retained Earnings P5,390,000

Total shareholder’s equity P15,390,000
Preference share are cumulative with dividends in arrears for 2 years with a
liquidation value of P110.
What is the book value per share of preference share capital? * (2 Points)
P130
The Corporation shareholders’ equity section of the Statement of Financial

Position includes the following accounts and balances:
12% Preference Share Capital, P100 par, 5,000 shares issued P500,000
Preference Share Premium 50,000
Retained earnings 750,000
The corporation decided to retire 2,000 of the Preference Shares at P115 per
share.
How much is the indicated gain or loss on retirement of the Preference Shares?
Put a parenthesis if it is an indicated loss. * (2 Points)
(P10,000)
10
DEF Corporation currently have Ordinary Share Capital, P 20 par, 50,000 shares
and replace it by
issuing no-par share capital with a stated value of P 20.
DEF also have balance of Ordinary Share Premium of P 250,000 and Retained
Earnings of P 500,000.
How much is the balance of the Ordinary Share Capital after the replacement?
* (2 Points)
500,000
1,750,000
1,250,000
1,000,000
11
How would total stockholders’ equity be affected by the declaration of each of

the following?
Stock split Stock dividend
* (1 Point)
No effect Decrease
Increase No effect
No effect No effect
Decrease Decrease
12
DEF Corporation currently have Ordinary Share Capital, P 20 par, 50,000 shares
and replace it by
issuing no-par share capital with a stated value of P 20.
DEF also have balance of Ordinary Share Premium of P 250,000 and Retained
Earnings of P 500,000.
How much is the Total Shareholder's Equity after the replacement?
* (2 Points)
500,000.00
1,750,000.00
1,250,000.00
1,000,000.00
13
_________________dividends are paid out to shareholders by issuing new shares in

the company. These are paid out pro-rata, based on the number of shares the
investor already owns. * (1 Point)
special dividend
liquidating dividend
cash dividend
stock dividend
property dividend
14
The ownership of share capital entitles ordinary shareholders to all of the

following rights, except: * (1 Point)
Right to receive guaranteed dividends
Voting right
Preemptive rights.
Right to receive proportionate share of assets in corporate liquidation
15
The Statement of Financial Position of Cardo Inc. shows P30 par value Ordinary
Share Capital, authorized shares of 15,000 with 1,200 shares issued at P
33/share and 3,000 shares subscribed at P40/share at the beginning of the
year. At the end of the year, the issued shares totaled 6,400 and subscribed
shares are now 1,300 shares (collectible immediately). If no other
subscriptions were made during the year, the shares issued for cash the year
would be _______ shares. * (2 Points)
1,300
6,400
3,500
5,200
16
Donated capital, share warrants outstanding and share options outstanding are
part of contributed capital. * (1 Point)
FALSE
TRUE
17
To go to PUP main campus, you can (click all that applies) * (1 Point)
ride the mrt
ride the jeepney
ride the ferry boat
ride the train
18
In 2020, ION Corporation issued 50,000 shares of P10 par value for P100 per
share. In 2021, the entity reacquired 2,000 shares at P150 per share and
immediately canceled these 2,000 shares. In connection with the retirement of
shares, what amount should be debited to Share Premium, and Retained
Earnings, respectively?In 2020, ION Corporation issued 50,000 shares of P10 par
value for P100 per share. In 2021, the entity reacquired 2,000 shares at P150
per share and immediately canceled these 2,000 shares. In connection with the
retirement of shares, what amount should be debited to Share Premium, and
Retained Earnings, respectively? * (2 Points)
180,000 and 100,000
20,000 and 280,000
280,000 and 0
100,000 and 180,000
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19
On September 15, 2021, LCM Partnership entered into liquidation. The

partners' profit and loss ratios and capital balances on this date were as
follows:
L 25% 2,500,000.00
C 35% 5,400,000.00
M 40% 3,700,000.00
Total 11,600,000.00
The partnership has liabilities amounting to P 4,400,000, including a loan

from C in the amount of P600,000.
Cash on hand before starting the liquidation process is P 800,000.
Non-cash assets amounting to P 7,400,000 were sold at book value and the
remainder of the non-cash assets were sold at a loss of P 4,200,000.
How much cash will be distributed to the partners?
* (2 Points)
P 11,800,000
P 7,400,000
P 4,400,000
P 8,000,000
20
Which of the following statements is wrong? * (1 Point)
A stock split results in the reduction of the par or stated value per share and proportional in‐
crease in the number of shares outstanding.
In a stock split, only the content of contributed capital is changed, whereas in a stock dividend
the amount of contributed capital is changed.
A reverse stock split increases the number of shares outstanding
When stock rights are issued to current stockholders, it may require more than one such right
to later acquire one additional share of the stock covered by the rights.
21
On April 1, 2021, Honey Corp., a newly formed corporation, had the following
share issued and outstanding:
-Ordinary share, no par , P1 stated value, 20,000 shares originally issued for P30
per share
-Preference share, P10 par value, 6,000 shares originally issued for P50 per share
Honey’s April 1, 2021 statement of shareholders’ equity should report

Additional paid in Capital in the amount of?
* (2 Points)
P820,000
22
The H2 Corp has the following classes of share capital outstanding as of Dec 31,
2021.
Ordinary share capital, P20 par value, 20,000 shares outstanding
Preference share capital, 5% P100 par value, cumulative and partially

participating 4%, 2,000 shares outstanding
No dividends were paid on Preference shares for two years. On Dec 31, 2021 a
total Cash dividend of P180,000 was declared.
How much dividends will be received by the preference shares holders? *

(2 Points)
73,333
38,222
38,000
120,000
23
A company is not limited to paying distributions to its shareholders in the form

of cash or shares. A
company may also pay out other assets such as investment securities, physical
assets, and real estate,
although this is not a common practice and this is called. _________________. *

(1 Point)
property dividend
cash dividend
stock dividend
special dividend
24
The conversion of preference shares into ordinary shares increases total

shareholders’ equity. * (1 Point)
FALSE
TRUE
25
A gain or loss is recognized upon retirement of a corporation’s own share

capital when the retirement
price differs from the original issuance price of the share capital. * (1 Point)
TRUE
FALSE
26
Papasa Ka Sa Quali Corporation earned P540,000 during the year. The

shareholder’s equity is composed of 30,000, P10 par value ordinary shares and
20,000,P30 par value 10% cumulative preference shares throughout the year.
The board of directors decided not to declare dividends to help the company
recover from the effects of pandemic. How much is the earnings per share
presented in the financial statement? * (2 Points)
P16
27
On December 1, 2021, CAF Corporation declared equipment as a property

dividend payable on January 15, 2021. The carrying amount of the equipment is
P350,000, which approximates its fair value. The fair values of the equipment on
December 31, 2021, and January 15, 2022 are P400,000 and P390,000,
respectively. What is the balance of property dividends payable on December
31, 2021? * (2 Points)
P350,000
28
To record the Receipt of Subscription at stated value, * (1 Point)
Debit - Share Capital Subscription Receivable xx, Debit - Discount on Share Capital xx and
Credit - Share Capital Subscribed xx
Debit - Share Capital Subscription Receivable xx and Credit - Share Capital Subscribed xx
Debit - Share Capital Subscription Receivable xx and Credit - Share Capital xx
Debit - Share Capital xx and Credit - Share Capital Subscribed xx
29
Forever Young Corporation had 50,000 ordinary shares of P100 par value and
25,000 preference shares of P100 par value, 8% cumulative and 5%
participating. Dividends on the preference shares are two years in arrears
including the current year. The entity distributed P1,250,000 as dividends in the
current year. How much will be the total dividends distributed to preference
shareholders? * (2 Points)
P683,333
30
The shareholders' equity section of the statement of financial position of ABC

Co. contains the following:
Ordinary share capital, P10 par, 5,000,000 shares P30,000,000
Ordinary share premium 3,000,000
10% Preference share capital, P70 par, 500.000 shares 10,500,000
Preference shares premium 6,000,000
Retained Earnings 7,500,000
On November 15, 2022, 55,000 preference shares were converted to 8 ordinary

shares per preference share. On November 15, 2022, there was an entry on *
(2 Points)
Retained Earnings -1,650,000
Paid-In Capital -Conversion of Preference into Ordinary Shares-1,650,000
Paid in Capital from Donated Shares-1,650,000
Paid in Capital from Retirement of Preference Share-1,650,000
Paid in Capital from Sale of Treasury Share-1,650,000
31
ABC Corporation reported a profit of P7,500,000 as of December 31, 2022. The

company has the following share capital outstanding:
Ordinary share capital, P10 par, 5,000,000 shares P30,000,000
10% Convertible, Non-Cumulative Preference share capital, P70 par, 500.000

shares 10,500,000
10% Cumulative Preference share capital, P30 par, 500.000 shares 12,000,000
What is this year’s Earnings per share? * (2 Points)
P1.26 per share
P1.50 per share
P1.75 per share
P2.10 per share
P2.50 per share
32
Ada, Bea, Cindy and Diane are partners, sharing earnings in the ratio of 3/21,
4/21, 6/21 and 8/21. The balances of their capital accounts on December 31,
2020 are: Ada, P10,000, Bea, P250,000; Cindy, P250,000; and Diane, P90,000.
The partners decide to liquidate and they accordingly convert the noncash
assets into cash. After paying the liabilities amounting to P60,000, they have
P222,000 to divide. How much cash Bea should receive? * (2 Points)
P44,000
P0
P138,800
P83,200
33
At what amount should Appropriation of Retained Earnings for Treasury Shares

be recorded? * (1 Point)
Equal to the cost of the treasury shares acquired
Equal to the fair value of the shares reacquired
Equal to the reissuance price of the treasury shares
Equal to the original cost of the shares reacquired
34
The receipt of capital shares as donation does not change the number of
shares issued and recorded as debit to Treasury Shares at its par value on the
date of donation. * (1 Point)
FALSE
TRUE
35
FPJ Inc. received subscription for 5,250 Preference Shares at P 10 above par
value of P 200 per share. After a down payment of P 125 per share from all the
subscribers, how much is the balance of the Subscription
Receivable? * (2 Points)
P446,250
36
The shareholder’ equity of M Corp on Dec 31, 2021 follows:
10% Preference share capital P100 par, 45,000 shares P4,500,000
Ordinary share capital, P20 par, 180,000 shares P3,600,000
Preference share premium P1,000,000
Ordinary share premium P900,000
Retained Earnings P5,480,000

Total shareholder’s equity P15,480,000
Preference share are non-cumulative with dividends in arrears for 2 years with a
liquidation value of P110. On December 31, 2021, a cash dividend of P500,000
was declared.
What is the book value per share of ordinary share capital? * (2 Points)
56
120
130
180
37
Which of the following is not correct regarding legal capital? * (1 Point)
Legal capital is the portion of the paid-in capital arising from the issuance of share capital that
cannot be returned to the shareholders in any form during the lifetime of the corporation for
the protection of the corporate creditors.
For a corporation that issues par value share capital, legal capital is the total par value of the
shares issued and subscribed.
A corporation cannot distribute as dividends any amount that will impair its legal capital.
For a corporation that issues no-par but with stated value share capital, legal capital is the tota
stated value of the shares issued and subscribed.
For a corporation that issues no-par value share capital, legal capital is the total consideration
received or receivable from the shares issued and subscribed.
38
ABC Corporation has P10 par, 5,000,000 shares outstanding as of October 31,
2022. On November 15, 2022, the company declared a 10% stock dividend
distributable to shareholders of record as of October 31, 2022, payable on
January 15, 2023. The fair market value of ABC Corporation as of:
• October 31, 2022 – P12.00

• November 15, 2022 – P13.00
• December 31, 2022 – P11.75
• January 15, 2023 – P11.00
Entry to record the declaration of dividend should include an entry to

retained earnings amounting to * (2 Points)
P6,000,000
P6,500,000
P5,875,000
P5,500,000
39
In computing basic earnings per share, the amount of preference share

dividends on cumulative, non participating preference shares shall be * (1 Point)
deducted from net income whether declared or not
deducted from net income only when declared
added to net income only when declared
ignored
40
If there is no bidder, all of the delinquent shares will be issued in the name of
the Corporation. Such shares are considered * (1 Point)
Treasury Shares
Receivable from Highest Bidder
Share Capital Subscribed
Share Capital
41
In liquidation of a partnership by installment, the profit and loss ratio are used
for cash payments to partners * (1 Point)
at no time
throughout the course of the liquidation
only in asset realization that results in a gain
once the partner’s capital account balances have been reduced to the profit and loss ratio
once the claims of outside creditors are fully settled.
42
Dividends per share (PS is non cumulative, non participating, Supply the

answer. Round off answer to 2 decimal places.
The Shareholders’ Equity section of ABC Corp shows the following for
years 2020 and 2021
5% Preference Share, P25 par P93,500
Ordinary shares, P10 37,500
Dividends declared for2020 amounted P4,000 and P7,000 on 2021.
Give the dividend share for ordinary shares on 2021. (format P1.23)
* (2 Points)
P0.62
43
A Corporation has 6,000 shares of P100 par value Ordinary Share Capital and
reacquires 1,000 shares at P100 as Treasury Shares. What is the balance of the
Ordinary Share capital account after the purchase of Treasury Shares? *
(2 Points)
P100,000
P500,000
P700,000
P600,000
44
On March 1, 2021, Riza Corp. issued 1,000 shares of its P20 par value ordinary
share and 2,000 shares of its P20 par value convertible preference share for a
total of P80,000. At this date, Riza ordinary share was selling for P36 per share,
and the convertible preference share was selling for P27 per share. What
amount of the proceeds should be allocated to Riza’s convertible preference
share? * (2 Points)
P54,000
45
ABC Corporation currently have Ordinary Share Capital, P20 par, 50,000 shares
and undertakes a 2 for 1 share split. How much is the current par value of
share? * (2 Points)
P20
P40
P10
P5
46
_________________this is the payment of actual cash from the company directly to

the shareholders and
is the most common type of payment. The payment is usually made

electronically (wire transfer), but may also be paid by check or cash. * (1 Point)
stock dividend
special dividend
cash dividend
property dividend
47
The formula for calculating the book value per share where there is preference
share is as follows:
* (1 Point)
b.
e.
c.
a.
d.
48
MM Co. had 100,000 shares of ordinary share issued and outstanding at January
1, 2021. During 2021, MM took the following actions:
March 15—Declared a 2-for-1 stock split, when the fair value of the share was
P80 per share
December 15- Declared a P.50 per share cash dividend
In MM’s statement of shareholders’ equity for 2021 , what amount should MM

report as dividend?
* (2 Points)
P100,000
49
The Statement of Financial Position of Cardo Inc. shows P30 par value Ordinary
Share Capital, authorized shares of 10,000 with 1,200 shares issued at P
33/share and 3,000 shares subscribed at P40/share at the beginning of the
year. At the end of the year, the issued shares totaled 6,400 and subscribed
shares are now 1,300 shares (collectible immediately). If no other
subscriptions were made during the year, how much is the Legal Capital at the
end of the year? * (2 Points)
P231,000
50
NXP Corporation issues P15 par value ordinary shares during 2021. The
company received subscription from Mr. Navarro for 25,000 shares at P18 per
share receiving 45% of the subscription price. On due date, Mr. Navarro failed
to pay the balance of the subscription. The shares were subsequently declared
delinquent and were advertised for sale at a public auction incurring P4,000 for
advertising the sale. At the public auction, the company received bids from Mr.
Pineda for 10,000 shares, Mr. De Torres for 9,000 shares, and Mr. Belen for
12,000 shares. The balance of the subscription price was outstanding for two
months and was subject to 12% interest. How much cash was collected from
the highest bidder? * (2 Points)
P265,450
51
Share capital may be reacquired and retired by issuing corporation. An entry to

retained earnings is a
result of: * (1 Point)
retirement price = original issuance price
retirement price > original issuance price
cancellation of related additional paid-in capital from original issuance of the stock
retirement price < original issuance price
52
MIA Corp. a calendar-year company, had sufficient retained earnings in 2021 as

a basis for dividends, but was temporarily short of cash. Mia declared a
dividend of P100,000 on April 1, 2021, and issued promissory notes to its
shareholders in lieu of cash. The notes, which were dated April 1, 2021, had a
maturity date of March 31, 2024, and 10% interest rate. How much cash will be
paid to the shareholders assuming the date of payment was made on
December 31, 2021? * (2 Points)
P107,500
53
Upon default of the original subscriber, the debited account is * (1 Point)
Share Capital Subscribed
Share Capital Subscription
Receivable from the Highest Bidder.
Share Capital
54
Which of the following is not one of the basic rights of shareholder? * (1 Point)
The right to inspect the accounting records of the corporation.
The right to maintain one’s proportionate interest in the corporation.
The right to participate in the proceeds from the sale of corporate assets upon liquidation of
the company.
The right to participate in earnings.
55
A no-par, no stated value share capital is described as: * (1 Point)
has a nominal value in the articles of incorporation but not on the face of the stock certificate
has a nominal or face value stated on the face of the stock certificate and in the articles of
incorporation
has no nominal value stated either in the articles of incorporation nor on the face of the stock
certificate
56
Dividends on cumulative preference shares are deducted from the net income
used in computing for the
Earnings per Share whether declared or not. * (1 Point)
FALSE
TRUE
57
The J3 Corp has the following classes of share capital outstanding as of Dec 31,
2021.
Preference share capital, 5% P100 par value, non-cumulative and fully

participating, 2,000 shares outstanding
How much dividends will be received by the preference shares holders? *

(2 Points)
70,000
30,222
120,000
150,333
58
Gagamiting ang karunungan….. * (1 Point)
hanap nadunongamingalay
pandayan ng isip ng kabataan
mula sa iyo, para sa bayan
dinarangal ang Pilipino
59
The Shareholders’ Equity section of VHONG Corporation as of December 31,

2021 before closing its books and recording the 2021 dividends is as follows:
Ordinary Share, 100,000 shares issued and outstanding, P3,000,000; Ordinary
Share Premium P4,000,000; Retained Earnings P8,000,000. VHONG’s Board of
Directors declared a 20% share capital dividend on December 31, 2021 when
the market value of each share was P70. The corporation’s 2021 operations
resulted to a loss of P1,200,000. What amount should the corporation report as
Retained Earnings as of December 31, 2021? * (2 Points)
P6,200,000
60
MEME Corporation’s Retained Earnings at December 31, 2021 amounted to

P2,000,000. On that date, the corporation declared and distributed its
investment property which was acquired at a historical cost P300,000 and has a
fair market value of P450,000 on December 31, 2021. On the date of
declaration and distribution, by what amount should Retained Earnings be
charged? * (2 Points)
P300,000
P150,000
None
P450,000
61
Which of the following is an appropriate presentation of treasury shares in the

statement of financial position? * (1 Point)
as a deduction at cost from total liabilities
as an investment in the asset section
as a deduction at cost from shareholders’ equity
as a deduction from contributed capital
62
The entry to record issuance of stock certificate upon full payment of

Subscription under Journal entry
method is * (1 Point)
Debit - Share Capital Subscribed xx and Credit - Share Capital xx
Debit - Share Capital Subscribed xx and Credit - Unissued Share Capital xx
Debit - Share Capital Subscription xx and Credit - Unissued Share Capital xx
Debit - Share Capital xx and Credit - Share Capital Subscribed xx
63
The purchase of Treasury Ordinary Shares * (1 Point)
decreases issued ordinary shares
has no effect on ordinary shares outstanding
decreases authorized ordinary share capital
decreases outstanding ordinary shares
64
The JHONG Corporation had the following balances in its Shareholders’ Equity
accounts as of December 31, 2019: Ordinary Share Capital, P10, par, 20,000
shares issued P200,000; Additional Paid In Capital P80,000; Retained Earnings
P100,000; Treasury Shares at cost (2,000 shares) P24,000. The following
shareholders’ equity transactions took place in 2020 and 2021:
1. Dividends declared in 2020 were P22,000 and in 2021 were P 35,000.
2. Sold 1,000 Treasury shares at P15 per share in 2020 and 600 shares at P28
per share in 2021.
3. Issued an additional 1,500 new shares at P18 per share in 2021.
4. Net profit for 2020 was P80,000 and for 2021was P98,000.
How much is the balance of the Treasury Shares account as of December 31,
2021? * (2 Points)
P4,800
65
If the Share Capital is issued above par value, cash is debited for the amount
received, Share Capital is credited at par value, what account is credited for the
excess of cash received over par value? * (1 Point)
Share Capital Premium
Unissued Share Capital
Discount on Share Capital
Paid in Capital in excess of stated value.
66
The ABC Corporation received subscription for 9,000 ordinary shares at

P40/share, where P35 is the par value and received 40% downpayment. A
month after 3,600 of said shares were in full while the rest paid an additional
P20/share. By the end of the year, 500 of said subscribers were not able to pay
and were declared as delinquent. How much would be debited as Receivable
from highest bidder? * (2 Points)
P216,000
67
Which of the following statements describing a corporation is not true? *

(1 Point)
Shareholders own the business and manage its day to day affairs.
A corporation is subject to greater governmental regulation than single proprietorship or

partnership
Shareholders are the owners of a stock corporation.
When the ownership of a corporation changes, the corporation does not terminate
68
The J3 Corp has the following classes of share capital outstanding as of Dec 31,
2021.
Preference share capital, 5% P100 par value, cumulative and fully participating,
2,000 shares outstanding
How much dividends will be received by the ordinary shares holders? *

(2 Points)
73,333
30,222
126,667
150,333
69
The Corporation shareholders’ equity section of the Statement of Financial

Position includes the following accounts and balances:
Ordinary Share Capital, P100 par, 5,000 shares issued P500,000
Ordinary Share Premium

50,000
Retained earnings

750,000
Assuming a major shareholder donated 5,000 shares when the market value of
the share capital was P140 per share, and was recorded as a debit to Treasury
Shares and credit to Donated Capital. How much was the increase (decrease) in
the total Additional Paid In Capital? Put a parenthesis if your answer is decrease.
* (2 Points)
P0
70
Prior to the split, Zebra Corp. had 200,000 shares of P30 par value share.
On December 31, Zebra Corp. split its share to 5 for 2 when the market value
was P50 per share.
What is the par value of the share after the split? * (2 Points)
P12
71
A company can use the following method to increase its book value per share: *
(1 Point)
Increase liabilities
Repurchase common stocks
Issue additional common stocks
Decrease assets
None of the above
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7/31/22, 5:51 PM FAR 2 Final Departmental Examination 2022

FAR 2 Final Departmental Examination

Name (LN, FN, MN) *

ORGANISTA, GLENDA, RAMIREZ

Name of Accounting Teacher *

Di Ako Babagsak Company has 10,000 P50-par convertible preference shares

The shareholder’ equity of L Corp on Dec 31, 2021 follows:

10% Preference share capital P100 par, 45,000 shares P4,500,000

Ordinary share capital, P20 par, 180,000 sharesP3,600,000

Preference share premium P1,000,000

Ordinary share premium P900,000

Retained Earnings P5,390,000

Total shareholder’s equity P15,390,000

The Corporation shareholders’ equity section of the Statement of Financial

Preference Share Premium 50,000

Retained earnings 750,000

issuing no-par share capital with a stated value of P 20.

How would total stockholders’ equity be affected by the declaration of each of

Stock split Stock dividend

No effect No effect

issuing no-par share capital with a stated value of P 20.

How much is the Total Shareholder's Equity after the replacement?

_________________dividends are paid out to shareholders by issuing new shares in

The ownership of share capital entitles ordinary shareholders to all of the

Right to receive guaranteed dividends

Right to receive proportionate share of assets in corporate liquidation

ride the mrt

ride the jeepney

ride the ferry boat

ride the train

180,000 and 100,000

20,000 and 280,000

100,000 and 180,000

On September 15, 2021, LCM Partnership entered into liquidation. The

L 25% 2,500,000.00

C 35% 5,400,000.00

M 40% 3,700,000.00

The partnership has liabilities amounting to P 4,400,000, including a loan

Cash on hand before starting the liquidation process is P 800,000.

How much cash will be distributed to the partners?

Which of the following statements is wrong? * (1 Point)

A reverse stock split increases the number of shares outstanding

Honey’s April 1, 2021 statement of shareholders’ equity should report

Ordinary share capital, P20 par value, 20,000 shares outstanding

Preference share capital, 5% P100 par value, cumulative and partially

How much dividends will be received by the preference shares holders? *

A company is not limited to paying distributions to its shareholders in the form

although this is not a common practice and this is called. _________________. *

The conversion of preference shares into ordinary shares increases total

A gain or loss is recognized upon retirement of a corporation’s own share

Papasa Ka Sa Quali Corporation earned P540,000 during the year. The

On December 1, 2021, CAF Corporation declared equipment as a property

To record the Receipt of Subscription at stated value, * (1 Point)

Debit - Share Capital Subscription Receivable xx and Credit - Share Capital xx

Debit - Share Capital xx and Credit - Share Capital Subscribed xx

The shareholders' equity section of the statement of financial position of ABC

Ordinary share capital, P10 par, 5,000,000 shares P30,000,000

Ordinary share premium 3,000,000

10% Preference share capital, P70 par, 500.000 shares 10,500,000

Preference shares premium 6,000,000

Retained Earnings 7,500,000

On November 15, 2022, 55,000 preference shares were converted to 8 ordinary

Retained Earnings -1,650,000

Paid-In Capital -Conversion of Preference into Ordinary Shares-1,650,000