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    A Company Issued 60 Shares of $100 Par Value Share For $7,000 Cash. The Total Amount of Share Premium Is

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    Janwyne Ng
    Corporations are subject to fewer regulations than sole proprietorships and partnerships. Shares are attractive to investors because shareholders are not liable for corporate actions/debts and shares can be easily transferred. Organizational costs for a corporation often include legal and promoter fees. Special rights for preference shares include preference for receiving dividends and distribution of assets if the corporation is liquidated.

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    A Company Issued 60 Shares of $100 Par Value Share For $7,000 Cash. The Total Amount of Share Premium Is

    Uploaded by

    Janwyne Ng
    20 views3 pages
    Corporations are subject to fewer regulations than sole proprietorships and partnerships. Shares are attractive to investors because shareholders are not liable for corporate actions/debts and shares can be easily transferred. Organizational costs for a corporation often include legal and promoter fees. Special rights for preference shares include preference for receiving dividends and distribution of assets if the corporation is liquidated.

    Original Title

    ACC ANSWER

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    Corporations are subject to fewer regulations than sole proprietorships and partnerships. Shares are attractive to investors because shareholders are not liable for corporate actions/debts and shares can be easily transferred. Organizational costs for a corporation often include legal and promoter fees. Special rights for preference shares include preference for receiving dividends and distribution of assets if the corporation is liquidated.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    20 views3 pages

    A Company Issued 60 Shares of $100 Par Value Share For $7,000 Cash. The Total Amount of Share Premium Is

    Uploaded by

    Janwyne Ng
    Corporations are subject to fewer regulations than sole proprietorships and partnerships. Shares are attractive to investors because shareholders are not liable for corporate actions/debts and shares can be easily transferred. Organizational costs for a corporation often include legal and promoter fees. Special rights for preference shares include preference for receiving dividends and distribution of assets if the corporation is liquidated.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    1.

    Corporations are subject to substantially fewer regulations and laws than are sole
    proprietorships and partnerships.
    - True
    2. Shares are attractive to investors because shareholders are not liable for the corporation's
    actions and debts and because shares are easily transferred.
    - True
    3. Authorized shares are the total number of shares outstanding. 
    - False
    4. Organizational costs of a corporation often include legal fees and promoter fees.
    - True
    5. Special rights often granted to preference shares include a preference for receiving dividends
    and for the distribution of assets if the corporation is liquidated.
    - True
    6. The only way that a shareholder can affect the management of a corporation is to get elected to
    the corporation's board of directors. 
    - False
    7. A corporation is a legal entity separate from its owners.
    - True
    8. A corporation can issue two kinds of shares, namely ordinary shares and preference shares.
    - True
    9. The maximum life of a corporation is 50 years, which can be subject for renewal after.
    - True
    10. Shareholders own the business and manage its day to day affairs.
    - False
    11. Itaewoon Corp. issued 1,000 shares of its P50 par value ordinary share in exchange for a land
    with book value of P40,000 and a fair value of P120,000. What is the total increase in share
    premium?
    - P70,000
    12. Itaewoon Corp. issued 1,000 shares of its P50 par value ordinary share in exchange for a land
    with book value of P40,000 and a fair value of P120,000. How much should be credited to
    Ordinary Share Capital?
    - P50,000
    13. The ownership of a stock certificate entitles ordinary shareholders to all of the following rights
    except: 
    - Right to receive guaranteed dividends
    14. A corporation sold 14,000 shares of its $10 par value ordinary shares at a cash price of $13 per
    share. The entry to record this transaction would include:
    - A credit to Ordinary Share Capital for $140,000.
    15. A company issued 60 shares of $100 par value share for $7,000 cash. The total
    amount of share premium is:
    - $1000
    16. A corporation issued 5,000 shares of $10 par value ordinary shares in exchange for some land
    with a market value of $60,000. The entry to record this exchange is:
    - Debit Land $60,000; credit Ordinary Share Capital $50,000; credit Share Premium – Ordinary
    $10,000.
    17. The maximum number of shares of stock that the government gives a corporation permission to
    issue is the:
    - authorized shares
    18. A non-cash asset received in exchange for share capital is recorded at:
    - market value
    19. Organization cost, an asset on the books of a corporation, includes:
    - All of the above
    20. When stock is sold on a subscription basis and the entire subscription price has been
    collected, the issuance of the stock is recorded by:
    - A debit to Subscribed Share capital and a credit to Share capital.

    21.

    22.

    23.
    24.

    25. Trivia Question: How many years old was the Corporation Code of the Philippines before
    it was revised by President Rodrigo Duterte last February of 2019? *
    - 38

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