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    PARCOR Quiz Chapter 6

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    Angelica Shane
    1. This document provides 3 problems involving accounting for corporations, including calculating offer prices, journal entries for issuing and reacquiring shares, and preparing balance sheet accounts. 2. The first problem involves calculating offer prices and journal entries for a delinquent shareholder, the second prepares tables and entries for treasury share transactions, and the third requires preparing various balance sheet accounts. 3. The problems test understanding of accounting for share capital, treasury shares, retained earnings and dividends for corporations.

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    PARCOR Quiz Chapter 6

    Uploaded by

    Angelica Shane
    282 views2 pages
    1. This document provides 3 problems involving accounting for corporations, including calculating offer prices, journal entries for issuing and reacquiring shares, and preparing balance sheet accounts. 2. The first problem involves calculating offer prices and journal entries for a delinquent shareholder, the second prepares tables and entries for treasury share transactions, and the third requires preparing various balance sheet accounts. 3. The problems test understanding of accounting for share capital, treasury shares, retained earnings and dividends for corporations.

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    1. This document provides 3 problems involving accounting for corporations, including calculating offer prices, journal entries for issuing and reacquiring shares, and preparing balance sheet accounts. 2. The first problem involves calculating offer prices and journal entries for a delinquent shareholder, the second prepares tables and entries for treasury share transactions, and the third requires preparing various balance sheet accounts. 3. The problems test understanding of accounting for share capital, treasury shares, retained earnings and dividends for corporations.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    282 views2 pages

    PARCOR Quiz Chapter 6

    Uploaded by

    Angelica Shane
    1. This document provides 3 problems involving accounting for corporations, including calculating offer prices, journal entries for issuing and reacquiring shares, and preparing balance sheet accounts. 2. The first problem involves calculating offer prices and journal entries for a delinquent shareholder, the second prepares tables and entries for treasury share transactions, and the third requires preparing various balance sheet accounts. 3. The problems test understanding of accounting for share capital, treasury shares, retained earnings and dividends for corporations.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    PARCOR

    QUIZ
    Accounting for Corporations

    Direction: Put all your answers and solutions in a worksheet. Specify which requirement
    number your answer corresponds. If needed, round off all amounts to the nearest peso.

    Problem 1

    Assume that 10,000 shares with P30 par value were subscribed by Alonzo on May 9 for
    P65 each. Schedule of installment payments is as follows:

    May 20 35%
    May 31 35%
    July 2 final settlement

    Alonzo was able to pay on May 20 and 31 but failed to fully pay on July 2.

    The Corporation accrued P8,500 of interest on delinquent subscription and incurred


    P12,380 auction expenses.

    Bidders were as follows


    Justin 3,000 shares
    Lyca 2,800 shares
    Elha 3,100 shares

    The highest bidder was chosen to pay the offer price.

    Answer the following questions:


    1. How much was the offer price?
    2. Who is the highest bidder?
    3. How many shares were issued to the highest bidder?
    4. How many shares were issued to Alonzo?
    5. Prepare the necessary journal entries on the books of the corporation.

    Problem 2

    Given are the following transactions in chronological order:

    1. issued 100,000 shares with P12 par value for P15/share


    2. reacquired 20,000 shares for P20 each
    3. reissued 8,000 treasury shares for P23/share
    4. reissued 3,000 treasury shares for P18/share
    5. reissued 5,000 treasury shares for P20/share
    6. retired the remaining treasury shares
    Required:
    1. Prepare a table showing the number of shares issued, outstanding and treasury
    after each transaction.
    2. Prepare the necessary journal entries.

    Problem 3

    The following information is provided for ABC Corporation

    Ordinary share capital, P50 par value, 200,000 shares authorized, ____
    shares issued, 132,500 shares outstanding 7,500,000
    Share premium - ordinary 2,120,000
    9% preference shares, P90 stated value 100,000 shares authorized,
    30,000 shares issued, ____ shares outstanding ?
    Share premium - preference 3,000,000
    Share premium - treasury 504,300
    Donated capital 850,000
    Treasury shares (ordinary) 1,435,000
    Retained earnings (debit balance) 190,500
    Cash dividends payable 750,200
    Subscribed ordinary shares 1,000,000
    Subscription receivable 565,800

    Answer the following:

    1. Number of ordinary shares issued


    2. Total ordinary shares outstanding
    3. Number of preference shares outstanding
    4. Total legal capital
    5. Number of treasury shares
    6. Cost per treasury share
    7. Number of ordinary shares subscribed
    8. If 1/4 of share premium - ordinary pertains to subscribed shares, how much is the
    selling price per subscribed share?
    9. Average selling price per preference share
    10. Average selling price for all issued and subscribed ordinary shares
    11. If 1/4 of share premium - ordinary pertains to subscribed shares, how much of the
    total subscription was already paid?
    12. Amount of annual dividend for preference shares
    13. Total shareholders’ equity (prepare the equity section of the balance sheet)

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