QUIZ ON CORPORATION DOC

Title	QUIZ ON CORPORATION
Author	Roman Asino
Pages	1
File Size	38.5 KB
File Type	DOC
Total Downloads	26
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Name:_________________ Score:______________ Year & Section:_________ Date:_______________ Multiple Choice: 1. A corporation issued 400,000 ordinary shares in 2000. In the middle of 2001, 50,000 treasury shares were acquired. In the third quarter of 2001, additional 300,000 ordinary shares and 100,000 preference shares convertible into 200,000 ordinary shares were issued. On December 31, 2001, how many ordinary shares were outstanding? a. 650,000 b. 900,000 c. 850,000 d. 700,000 2. Ordinary treasury shares acquired for P20,000 were sold by the corporation to new shareholders for P30,000. What would be the credit to record the foregoing transaction? a. Ordinary treasury share premium would be credited for P10,000 b. Ordinary treasury share premium would be credited for P30,000 c. Ordinary treasury share would be credited for P30,000 d. Ordinary share capital would be credited for P20,000 3. On June 1, 2000, a corporation acquired at P120 per share its own 200 ordinary shares with a par value of P100 per share. On October 1, another 300 shares were acquired at P125 per share. How much would be the restriction on Retained Earnings as a result of the two transactions on December 31, 2000? a. P61,500 b. P62.500 c. P50,000 d. P0.00 4. In 2000, a corporation issued at P100 per share 50,000 ordinary shares with a par value of P10 per share. The corporation acquired 20,000 of these shares in 2001 at P150 per share and immediately cancelled these shares. In connection with the retirement of 20,000 shares, the corporation should debit a. Ordinary shares premium for P1,800,000 and Retained earnings for P1,000,000 b. Ordinary shares premium for P200,000 and Retained earnings for P2,800,000 c. Ordinary shares premium for P1,000,000 and Retained earnings for P1,800,000 d. Ordinary shares premium for P2,800,000 5. The shareholder's equity for CBA Corporation at December 31, 2000 is shown below: Ordinary share capital, P100 par, 100,000 shares authorized ………..P9,000,000 Ordinary share premium ……………………………………………... 2,700,000 Retained earnings ……………………………………………………. 1,300,000 All of the outstanding ordinary shares were sold P130 per share. In 2001, the corporation acquired 10,000 of its ordinary shares at p120 per share and retired them. Immediately after the ordinary treasury were retired, the balance of ordinary share premium would be a. P2,400,000 b. P2,500,000 c. P2,600,000 d. P2,800,000 6. Last year, JPIA Company acquired 6,000 shares of its own P100 par value ordinary shares at P180 per share. This year, JPIA issued 3,000 of these shares at P250 per share. JPIA uses the cost method to account for its treasury share transactions. What accounts and amount should JPIA credit this year to record the issuance of the 3,000 shares?...