The account shown below appear in the December 31, 2014 trial

balance of Hallow Company:

Preference share 10,000,000
Unissued Preference share 3,600,000
Ordinary share authorized 20 par 4,000,000
Subscription Receivable, PS 380,000
Subscription Receivable, OS 360,000
Subscribed Preference Share 600,000
Subscribed Ordinary Share 440,000
Treasury Share at Cost 1,360,000
Share Premium 1,700,000
Accumulated Profits and losses 2,000,000

All subscription receivable are due in year 2015.

How much is the total shareholders’ equity of Hallow Corporation?

Steam Company disclosed the following information for the year ended

m
December 31, 2014:

er as
Bonds Payable 300,000
Share Premium on ordinary share 50,000

co
eH w
Donated Capital 40,000
Treasury Share at Cost 20,000

o.
Ordinary Share Capital,par 100 500,000
rs e
Ordinary Share option warrants 100,000
ou urc
Investment in available for sale securities 70,000
Share premium from treasury share 15,000
Accumulated Profits and losses 135,000
What is the total shareholders’ equity of Steam Company for the year
o

ended December 31, 2014?

aC s
vi y re

The following were data were compiled prior to preparation of the

financial statements of Stalker Company as of December 31, 2014:

Unrealized Gain on available for sale securities 200,000

ed d

Excess of par- OS 500,000

ar stu

Excess of par-PS 400,000

Excess of market value over par value on ordinary share dividends
200,000
Donated Capital 600,000
is

Ordinary Share capital 8,000,000

Share dividend payable, ordinary 1,000,000
Th

Preference share capital 1,000,000

Accumulated Profits, unappropriated 1,500,000
Accumulated Profits, reserved:
For Bond Redemption 2,000,000
sh

For plant expansion 2,500,000

For treasury share 800,000
Treasury share at cost 800,000
What is the total SHE as of December 31?

Hallway company issued 20,000 shares of its P10 par value ordinary
share and 40,000 share of its P10 par value convertible preference

This study source was downloaded by 100000829633845 from CourseHero.com on 07-30-2021 02:57:55 GMT -05:00

https://www.coursehero.com/file/94936960/pdfcoffeecom-she-quiz-pdf-freepdf/
 share for a total amount of 1,800,000. At this date, Hallway’s
ordinary share was selling P20 per share and the convertible share
were selling for P30 per share.
What amount of the proceeds should be allocated to the ordinary
shares?
What amount of the proceeds should be allocated to the preference
shares?

The following capital accounts are shown in the balance sheet of

Laughing Corporation:
Ordinary share 1,000,000
Premium on OS 20,000
Share Premium- Treasury Share 30,000
Accumulated Profits and Losses 750,000
Treasury Share 2,000 share at cost 250,000

The entire 2,000 treasury shares were sold for 200,000.

m
Record the re-issuance of treasury shares.

er as
What is the balance of the Retained Earnings account after this
sale?

co
eH w
The analysis of shareholders’ equity of P Company at January 1, 2014

o.
showed the following:
Ordinary Share 2,400,000
rs e
ou urc
Share Premium 480,000
Accumulated Profits and Losses 1,540,000

The company uses the cost method of accounting for treasury share
o

and the following transaction took place:

aC s

Acquired 2,000 shares of its share for 70,000. Sold 1,200 treasury
vi y re

shares at 40 per share. Retired the remaining treasury shares.

What is the journal entry to record the re-issuance of the treasury

shares?
ed d

What is the journal entry to record the retirement of the treasury

ar stu

shares?
What is the amount of the Share Premium at the end of the accounting
period?
is

The shareholders’ equity account balance of Guide Corporation as of

December 31,2013 are as follows:
Th

Ordinary Shares 2,500,000

Share Premium 500,000
Accumulated Profits 1,000,000
Treasury Share 2,000 shares at cost 320,000
sh

On January 2, 2014 Guide sold the treasury shares on the open market
at 200 per share.
What is the effect on the shareholders’ equity as a result of the
sale of treasury shares?

This study source was downloaded by 100000829633845 from CourseHero.com on 07-30-2021 02:57:55 GMT -05:00

https://www.coursehero.com/file/94936960/pdfcoffeecom-she-quiz-pdf-freepdf/
 Francisco Company was organized on January 2, 2014 with 300,000
ordinary shares with a P6 par value authorized. During 2014,
Francisco had the following stock transactions:
January 2 Issued 60,000 shares at P10 per share
March 8 Issued 20,000 shares at P11 per share
May 11 Purchased 7,500 shares at P12 per share
July 2 Issued 15,000 shares at P13 per share
August 17 Sold 5,000 treasury shares at P14 per share

Francisco uses the FIFO method for purchase and sold purposes

If Francisco uses the cost method to record treasury stock

transactions, how much would be the Share Premium at December 31?

The shareholders’ equity section of Bless Corporation’s Balance

Sheet at December 31,2013 as follows:
Ordinary Share 9,000,000

m
Share Premium 2,700,000

er as
Accumulated Profits and Losses 1,300,000

co
eH w
On January 2, 2014 Bless purchased and retired 100,000 shares of its
own equity for 1,800,000.

o.
rs e
Immediately after retirement of these 100,000 shares the balance in
ou urc
the Share Premium and Accumulated Profits and Losses should be?

During 2013, Limb Company issued 10,000 shares of 100 par value
convertible preference share for 110 per share. One preference share
o

can be converted into 3 shares of Limb’s P25 par ordinary share at

aC s

the option of the preference shareholder. On December 31, 2014 when

vi y re

the market value of the ordinary shares was P40, the entire
preference share was converted.
How much should be Limb credit to Share Premium as a result of the
conversion?
ed d
ar stu

The shareholders’ equity section of Fan Company revealed the

following information on December 31, 2014:
Preference share (100 par) 2,300,000; share premium in excess of par
805,000; ordinary share (15 par) 5,250,000; share premium in excess
is

of par-ordinary 2,750,000; subscribed ordinary share 50,000;

Accumulated Profits 1,900,000; and subscription receivable ordinary
Th

400,000.

How much is the legal capital?

sh

On July 1, 2014 Solo Company has 200,000 shares of 10 par ordinary

share outstanding and the market price of the share is P12 per
share. On the same date, Solo declared a 1 for 2 reverse share
split. The par of the share was increased from 10 to 20. Immediately
before the split the total share premium was 900,000.

This study source was downloaded by 100000829633845 from CourseHero.com on 07-30-2021 02:57:55 GMT -05:00

https://www.coursehero.com/file/94936960/pdfcoffeecom-she-quiz-pdf-freepdf/
 What should be the balance in Solo’s Share Premium account after the
reverse stock/share split is effected?

The Goat Corporation is authorized to issue 100,000 shares at P20

par ordinary share. At the beginning of 2014, 18,000 ordinary shares
were issued and outstanding. These shares had been issued at P27 per
share. During 2014, the company entered into the following
transactions:

January 2 Issued 1,300 ordinary shares at 28 per share

May 19 Exchanged 12,000 ordinary shares for a machine

The ordinary shares was selling at 30 per share.

May 8 Re acquired 500 ordinary shares at 29 per share

July 19 Accepted subscriptions for 1,000 ordinary shares at P31 per
share. The contract called for 10% down payment with the balance due

m
on December 1.

er as
September 1 Sold 500 a treasury share at 32 per share.
December 1 Collected the balance due on July 1 subscription.

co
eH w
How much is the total contributed capital for December 31, 2014?

o.
rs e
Effective April 23, 2014 the shareholders of Warm Corporation
ou urc
approved a 2 for 1 share split of Warm Ordinary share and an
increase in authorized ordinary share from 100,000 shares (par value
80) to 200,000 shares (par value 40). Warm’s shareholders’ equity
accounts immediately before issuance of the share split shares were
o

as follows:
aC s

Ordinary share (par value 80, 100,000 shares authorized, 50,000

vi y re

shares outstanding) 4,000,000; Share Premium 600,000; and

accumulated profits and losses 5,400,000. The split shares were
issued on June 30, 2014.
In Warm Corporation’s June 30, 2014 statement of shareholders’
ed d

equity balance of Share Premium and Accumulated Profits and Losses

ar stu

respectively are:

Granny Corporation purchased 10,000 shares of its P10 par value

ordinary share as treasury shares for 120,000 on March 2, 2014. Om
is

December 19, 2014, Granny issued all 10,000 treasury shares for
190,000.
Th

Under the cost method of accounting for treasury shares, what is the
journal entry for the reissuance of treasury shares?
sh

This study source was downloaded by 100000829633845 from CourseHero.com on 07-30-2021 02:57:55 GMT -05:00

https://www.coursehero.com/file/94936960/pdfcoffeecom-she-quiz-pdf-freepdf/
Powered by TCPDF (www.tcpdf.org)