Reference no: EM132777904

Questions -

Q1. Leslie Company was organized on January 2, 2018 at which date it issued 400,000 shares of P20 par ordinary share at P30 per share. During the period January 2, 2018 to December 31, 2020, Leslie reported Net Income of P1,800,000 and paid cash dividends of P920,000. On January 2, 2020, Leslie purchased 24,000 of its ordinary share at P24 per share. On December 31, 2020, Leave sold 16,000 treasury shares at P16 per share, What is the total shareholders' equity at December 31, 2020?

13,800,000

12,304,000

12,880,000

12,560,000

Q2. Shena Company reported the following accounts in the year-end trial balance: Preference share capital authorized (P100 par value) 2,500,000; Ordinary share capital(authorized 100,000 shares, no par value,issued 90,000 shares, P15 stated value) 1,350,000; Subscription receivable, ordinary 85,000; Subscription receivable, preferred 100,000; Preference share capital subscribed 150,000; Ordinary share capital subscribed 135,000; Treasury preference shares (2,500 shares at cost) 300,000; Retained Earnings 1,000,000; and Share premium - ordinary 475,000. What is the total issued share capital?

2,950,000

1,539,000

1,350,000

3,850,000

Q3. Shena Company reported the following accounts in the year-end trial balance: Preference share capital authorized (P100 par value) 2,500,000; Ordinary share capital(authorized 100,000 shares, no par value,issued 90,000 shares, P15 stated value) 1,350,000; Subscription receivable, ordinary 85,000; Subscription receivable, preferred 100,000; Preference share capital subscribed 150,000; Ordinary share capital subscribed 135,000; Treasury preference shares (2,500 shares at cost) 300,000; Retained Earnings 1,000,000; and Share premium - ordinary 475,000. What is the share capital available for subscription?

750,000

1,050,000

765,000

1,800,000

Q4. Nile Company reported the following amounts in the shareholders' equity on January 1, 2020: Preference share capital, P75 par value, 20,000 shares 1,500,000; Ordinary share capital, P25 par value, 100,000 shares 2,500,000; Share Premium 3,000,000; and Retained earnings 1,250,000. On January 1, 2020, the entity sold 20,000 additional shares for P45 per share. Late in 2020, it was learned that because of mathematical error, an overstatement of depreciation expense by P250,000 had occurred in 2019. The entity reported net income of P2,000,000 for 2020. The entity declared cash dividend of P500,000 on preference shares and P1,000,000 on Ordinary shares during 2020. The income tax rate is 30%. What amount should be reported as retained earnings on December 31, 2020?

2,225,000

2,925,000

3,000,000

2,575,000

Q5. Sushi Company declared and distributed 10% stock dividend with fair value of P3,000,000 and par value of P2,000,000, and 25% stock dividend with fair value of P8,000,000 and par value of P7,000,000.What aggregate amount should be debited to retained earnings for the stock dividends?

9,000,000

11,000,000

10,000,000

7,000,000

Q6. Charm Company began operations on January 1, 2017. During the first three years of operations, Charm Company reported net income of P1,500,000 for 2017, P2,500,000 for 2018, and P3,000,000 for 2019.The entity also declared and paid dividends of P1,000,000 for 2018 and P1,000,000 for 2019.The entity reported the following data for 2020:Income before income tax 5,000,000; Prior period adjustment - understatement of 2018 depreciation before tax 500,000; Cumulative decrease in income from change in inventory method before tax 1,000,000; Dividend declared (of this amount, P500,000 will be paid on January 15, 2021) 2,000,000; and Income tax rate 30%. What amount should be reported as retained earnings on December 31, 2020?

6,150,000

5000,000

5,450,000

6,500,000

Q7. Kat Company provided the following data for the current year: Retained Earnings - unappropriated, January 1 2,000,000; Overdepreciation of prior year net of tax 400,000; Net income for current year 4,000,000; Retained earnings appropriated for Treasury Shares (original balance Is P500,000 reduced by P200,000 by reason of reissuance) 300,000; Retained earnings appropriated for contingencies (beginning balance, P700,000 increased by current appropriation of P100,000) 800,000; Cash dividends paid to shareholders 1,000,000; and Change in accounting policy from FIFO to weighted average method - debit adjustment net of tax 300,000. What amount should be reported as unappropriated retained earnings on December 31?

6,000,000

5,200,000

4,800,000

5,100,000

Q8. Gaile Company has sustained heavy losses over a period of time and conditions warrant that the entity should undergo a quasi-reorganization at year-end. Inventory with cost of P6,500,000 was recorded at the market value of 6,000,000. Property, plant and equipment were recorded at P12,000,000, net of accumulated depreciation. The sound value was P8,000,000. The share capital is P7,000,000 consisting of 700,000 shares with par value of P10, the share premium is P1,600,000, and the deficit in retained earnings is P900,000. The par value of share is to be reduced from P10 to P5.Immediately after the quasi-reorganization, what is the shareholders' equity?

3,700,000

3,500,000

3,300,000

4,200,000