4/12/23, 10:18 PM ACT1205 Online Quiz 12 - Shareholders' Equity: AUDITING AND ASSURANCE PRINCIPLES: CONCEPTS AND APPLICATIONS

ACT1205 Online Quiz 12 - Shareholders' Equity

Due Apr 13 at 11:59pm Points 18 Questions 6
Available Apr 4 at 9am - Apr 13 at 11:59pm Time Limit 60 Minutes

Instructions
Solve the following problems.

You have 60 minutes to complete this quiz.

This is due on or before April 13, 2023 at 11:59PM.

Attempt History
Attempt Time Score
LATEST Attempt 1 42 minutes 18 out of 18

Score for this quiz: 18 out of 18

Submitted Apr 12 at 10:18pm
This attempt took 42 minutes.

Question 1 3 / 3 pts

Correct!   P76.62

  P75.84

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4/12/23, 10:18 PM ACT1205 Online Quiz 12 - Shareholders' Equity: AUDITING AND ASSURANCE PRINCIPLES: CONCEPTS AND APPLICATIONS

  P77.12

  P76.95

Question 2 3 / 3 pts

On January 2, 2021, Left Co. issued at par P3,000,000, 5-year,

10% bonds convertible in total into 200,000 of Left’s ordinary
shares. Without the conversion option, the bonds were selling
at the prevailing interest rate of 12%. Interest is payable every
December 31. No bonds were converted during 2021.
Throughout 2021, Left had 500,000 ordinary shares
outstanding. Left’s 2021 net income was P5,500,000. Left’s tax
rate is 32%. No other potentially dilutive securities other than
the convertible bonds were outstanding during 2021. What is
the diluted earnings per share in 2021?

  P11.00

Correct!   P8.18

  P10.52

  P9.12

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4/12/23, 10:18 PM ACT1205 Online Quiz 12 - Shareholders' Equity: AUDITING AND ASSURANCE PRINCIPLES: CONCEPTS AND APPLICATIONS

Question 3 3 / 3 pts

Five years ago, Dunn Trading Co. issued 2,500 ordinary

shares. The shares have a P2 par value and sold at that time
for P12 per share. On January 1, 2021, Dunn Trading Co.
Purchased 1,000 of these shares for P24 per share. On
September 30, 2021, Dunn reissued 500 of the shares for P28
per share. The journal entry to record the reissuance will
include

  A debit to Treasury Shares P12,000.

  A credit to Treasury Shares P14,000.

Correct!   A credit to Share Premium—Treasury P2,000.

  A credit to cash P14,000.

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4/12/23, 10:18 PM ACT1205 Online Quiz 12 - Shareholders' Equity: AUDITING AND ASSURANCE PRINCIPLES: CONCEPTS AND APPLICATIONS

Question 4 3 / 3 pts

Pember Corporation started business in 2015 by issuing

200,000 shares of P20 par ordinary shares for P36 each. In
2020, 20,000 of these shares were purchased for P52 per
share by Pember Corporation and held as treasury shares. On
June 15, 2021, these 20,000 shares were exchanged for a
piece of property that had an assessed value of P810,000.
Pember’s shares are actively traded and had a fair price of P60
on June 15, 2021. The cost method is used to account for
treasury shares. The amount of share premium—treasury
resulting from the above events would be

Correct!   P160,000

  P480,000

  P390,000

  P800,000

Question 5 3 / 3 pts

On September 1, 2021, Valdez Company reacquired 12,000

shares of its P10 par value ordinary shares for P15 per share.
Valdez uses the cost method to account for treasury shares.

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4/12/23, 10:18 PM ACT1205 Online Quiz 12 - Shareholders' Equity: AUDITING AND ASSURANCE PRINCIPLES: CONCEPTS AND APPLICATIONS

The journal entry to record the reacquisition of the shares

should debit

Correct!   Treasury Shares for P180,000.

  Treasury Shares for P120,000.

 
Share Capital—Ordinary for P120,000 and Share Premium—Ordinary for
P60,000.

  Share Capital—Ordinary for P120,000.

Question 6 3 / 3 pts

Correct!
905,000

orrect Answers 905,000 (with margin: 0)

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4/12/23, 10:18 PM ACT1205 Online Quiz 12 - Shareholders' Equity: AUDITING AND ASSURANCE PRINCIPLES: CONCEPTS AND APPLICATIONS

Quiz Score: 18 out of 18

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