Reference no: EM133027702

Question -

Q1. Dayron Company had 80,000 ordinary shares outstanding in January 2019. The entity distributed a 15% stock dividend in March and a 10% stock dividend in June.

After acquiring 10,000 shares of treasury in July, the entity split the share 4 for 1 in December.

1. How many shares were issued before the share split?

A. 101,200

B. 100,000

C. 91,200

D. 90,000

2. How many ordinary shares are outstanding on December 31, 2019?

A. 364,800

B. 488,000

C. 498,000

D. 451,500

Q2. Maple Tree Mall, Inc., has 2,500 shares of 2%, P25 par cumulative preferred stock and 125,000 shares of P2 par common stock outstanding. At the beginning of the current year, preferred dividends were four years in arrears. Maple Trees board of directors wants to pay a P2.50 cash dividend on each share of outstanding common stock in the current year. To accomplish this, what total amount of dividends must Maple Tree declare?

a. P250,000

b. P255,000

c. P256,250

d P318750

Q3. On May 1, 2022, Payne Co. issued 300,000 of 7% bonds at 103, which are due on April 30, 2022. Twenty detachable share warrants entitling the holder to purchase for 40 one share of Payne's ordinary shares, 15 par value, were attached to each 1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2022, the fair value of Payne's shares was 35 per share and of the warrants was 2.

1. On May 1, 2022, Payne should credit Share Premium -Share Warrants for

a. 9,000.

b. 12,000.

c. 21,000.

d. 12,360.

2. On May 1, 2022, Payne should record bonds at payable

a. discount of 296,640.

b. discount of 288,000.

c. discount of 300,000.

d. premium of 309,000.