University of St. La Salle - Bacolod City
ACCOUNTING 4
Practice Problems Set #8
Started: May 14 at 11:48am
Quiz Instructions
Compute for what is being asked in each problem. All answers should be in numeri
...
University of St. La Salle - Bacolod City
ACCOUNTING 4
Practice Problems Set #8
Started: May 14 at 11:48am
Quiz Instructions
Compute for what is being asked in each problem. All answers should be in numeric format. For example, 460,000 or 9,000. If your answer is negative, your answer must look like this, -460,000. Don't forget to place comma. Lastly, round off final answers to whole number.
Question 1 2 pts
36,480
Dayron Co. had 8,000 ordinary shares outstanding in January 2019. The company
distributed a 15% share dividend in March and a 10% share dividend in June 2019.
After acquiring 1,000 treasury shares in July 1, the company split its shares 4 for 1 in
December 2019. How many ordinary shares are outstanding as of December 31,
2019?
Question 2 2 pts
“The N” Corporation is authorized to issue 100,000 ordinary shares, P17 par value. At the beginning of 2019, 18,000 ordinary shares were issued and outstanding. These shares had been issued at P24. During 2019, the company entered into the following transactions:
Jan. 16 Issued 1,300 ordinary shares at P25 per share
Mar. 21 Exchanged 12,000 ordinary shares for a building. The ordinary shares were selling at P27 per share. The building had a carrying amount of P412,000.
Jul. 1 Accepted subscriptions to 1,000 ordinary shares at P28 per share. The contract called for 10% down payment with the balance due on December 1.
5/14/22, 12:48 PM Quiz: Practice Problems Set #8
https://usls.instructure.com/courses/14543/quizzes/153087/take 2/9
Sept. 20 Sold 500 treasury shares with cost of P26 per share at P29 per share.
Dec. 1 Collected the balance due on July 1 subscriptions and issued the shares.
Compute for the total contributed capital for December 31, 2019.
Question 3 2 pts
On December 31, 2019, Palau Company issued 200,000 shares of P100 par, 10%
cumulative preference shares for P25,000,000. One detachable warrant was
attached to each preference share issued. Each warrant gives the holder the right to
purchase one ordinary share, P50 par value, for P100. The market value of the
warrant after the preference shares were issued was P15. The warrants expire on
December 31, 2020. What amount of proceeds should be allocated to the preference
shares on December 31, 2019?
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