Reference no: EM132656236
Questions -
Q1. Assume the following accounts of MJE Corporation on December 31, 2019:
Accounts Payable 30,000
Income Tax Payable 400,000
Ordinary Share Capital 1,000,000
Mortgage payable (500,000 due in six months) 4,000,000
Note Payable due January 31, 2021 200,000
Share Premium 1,500,000
Preference Share Capital 4,500,000
Premium on Notes Payable 200,000
Unearned Rent Income 40,000
Employee income taxes witheld 12,500
Bank Overdraft at PNI Bank 76,000
Estimated expenses as a result of meeting warranties 115,000
Advances to subsidiary 54,000
Treasury Shares 150,000
Retained Earnings has the following information for the year:
Retained Earnings - January 1, 2019 2,250,000
Dividends - Ordinary 100,000
Dividends - Preference 200,000
Loss during the year 500,000
All dividends are paid during the year
How much is the Shareholder's Equity for the year 2019?
Q2. Assume the following accounts of MJE Corporation on December 31, 2019:
Accounts Payable 30,000
Income Tax Payable 400,000
Ordinary Share Capital 1,000,000
Mortgage payable (500,000 due in six months) 4,000,000
Note Payable due January 31, 2021 200,000
Share Premium 1,500,000
Preference Share Capital 4,500,000
Premium on Notes Payable 200,000
Unearned Rent Income 40,000
Employee income taxes witheld 12,500
Bank Overdraft at PNI Bank 76,000
Estimated expenses as a result of meeting warranties 115,000
Advances to subsidiary 54,000
Treasury Shares 150,000
Retained Earnings has the information for the year:
Retained Earnings - January 1, 2019 2,250,000
Dividends - Ordinary 100,000
Dividends - Preference 200,000
Loss during the year 500,000
All dividends are paid during the year
How much is the total liabilities to be reported in the Statement of Financial Position?
Q3. Kazakhstan Company is authorized to issue 600,000 ordinary shares, P10 par. The company had the following transactions in 2020:
Issued 20,000 shares at P30, received in cash
Issued 2,800 shares for legal services costing P100,000.
Issued 125,000 shares in exchange for a building valued at P2,950,000 and land valued at P800,000.
How much is the Ordinary Share Capital?
A. 1,478,000
B. 1,485,000
C. 1,543,000
D. 3,978,000
Q4. Five Company issued 10,000 shares of its P 5 par value ordinary shares having a fair value of P 25 per share and 15,000 shares of its P 15 par value preferred shares having a fair value of P 20 per share for a lump sum of P 520,000. How much of the proceeds would be allocated to the ordinary share?
A. 54,167
B. 276,250
C. 236,364
D. 270,833
Q5. On May 31, 2020, Ball Corporation's board of directors declared a 10% stock dividend. The market price of Ball's 30,000 outstanding shares of P20 par value common stock was P80 per share on that date. The stock dividend was distributed on July 31, 2020, when the stock's market price was P100 per share. What amount should Ball credit to share premium for this stock dividend?
A. -0-
B. 240,000
C. 180,000
D. 300,000
Q6. The shareholders' equity section of Gibberish Inc. Statement of Financial Position shows the following:
Preference share capital, P100 par 2,300,000.00
Ordinary share capital, P10 par 5,500,000.00
Treasury shares - ordinary, P12 cost/share 132,000.00
Share premium - ordinary 1,140,000.00
Share premium - preference 620,000.00
Subscribed ordinary shares 250,000.00
Subscription receivable (2 years collectibility 100,000.00
Share premium on subscribed ordinary shares 125,000.00
Share premium on treasury shares 110,000.00
Retained earnings 6,540,000.00
How many are the outstanding ordinary shares?
A. 539,000
B. 550,000
C. 587,000
D. 525,000
Q7. The shareholders' equity section of Uzbekistan Inc. statement of financial position shows the following:
Preference share capital, P100 par 2,300,000.00
Ordinary share capital, P10 par 5,500,000.00
Treasury shares - ordinary, P12 cost/share 132,000.00
Share premium - ordinary 1,140,000.00
Share premium - preference 620,000.00
Subscribed ordinary shares 250,000.00
Subscription receivable (2 years collectibility) 100,000.00
Share premium on subscribed ordinary shares 125,000.00
Share premium on treasury shares 110,000.00
Retained earnings 6,540,000.00
How much is the Total Shareholder's Equity?
A. 16,353,000
B. 16,792,000
C. 16,917,000
D. 16,817,000
Q8. Cruz Company has 490,000 shares of P 10 par value common share outstanding. During the year, Cruz declared a 10% share dividend when the market price of the share was P 30 per share. Four months later Cruz declared a P .50 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by
A. P 269,500.
B. P 735,000.
C. P 245,000.
D. P 1,739,500.