Академический Документы
Профессиональный Документы
Культура Документы
TRUE or FALSE
TRUE
LEVEL ONE
TRUE or FALSE
FALSE
LEVEL ONE
TRUE or FALSE
FALSE
LEVEL ONE
TRUE or FALSE
TRUE
LEVEL ONE
TRUE or FALSE
TRUE
LEVEL ONE
TRUE or FALSE
TRUE
LEVEL ONE
TRUE or FALSE
TRUE
LEVEL ONE
TRUE or FALSE
FALSE
LEVEL ONE
TRUE or FALSE
TRUE
LEVEL ONE
TRUE or FALSE
FALSE
LEVEL
TWO
LEVEL TWO
MULTIPLE CHOICE
The par value of a share capital
a. Is usually the same from its market value
b. Is often higher for ordinary share than for preference share
c. Is an arbitrary amount assigned to a share of stock
d. All of this answer is correct
ANSWER:
C. Both A and B
LEVEL
THREE
LEVEL
THREE
JOURNAL ENTRY
The Integrity Corporation was incorporated on January 1, 2010 with
authorized share capital of 25,000 shares of P100 par value 10%
preference share capital and 500,000 shares of P10 stated value
ordinary share capital. The shares were issued as follows:
Jan. 1 Issued for cash 6,250 preference shares at par, and
125,000 ordinary shares for P15.
Required: Entry under memo entry method.
ANSWER:
Cash 2,500,000
Preference share capital 625,000
Ordinary share capital 1,250,000
Ordinary share premium 625,000
LEVEL
THREE
JOURNAL ENTRY
The Security Corporation was organized on May 1, 2010 and is
authorized to issue 500,000 shares of ordinary share capital.
Subsequently, 125,000 shares were issued at P25 per share.
Required: Entry under journal entry method assuming that the share’s
par value was P30 per share.
ANSWER:
Cash3,125,000
Discount on share capital 625,000
Unissued ordinary share capital 3,750,000
LEVEL
THREE
JOURNAL ENTRY
The Honesty Corporation was organized on April 1, 2010 with
authorized share capital of 500,000 ordinary shares, par value of P10.
Thereafter, the following transactions took place:
April 25 Issued 5,000 shares for the services rendered by the lawyer
during the period of incorporation. The fair value of such
services is undeterminable.
Required: Entry under journal entry method.
ANSWER:
28Received balance due from subscribers of 50,000 shares. Shares of stock were
subsequently issued.