Scribd Logo
Upload

Welcome to Scribd!

  • 31 views

    Acctg 101 Final Quiz

    Uploaded by

    Andrea Tugot
    This document contains 5 multiple choice questions from an accounting quiz. Each question provides financial information for a company and requires the student to record journal entries for transactions such as issuing stock, paying dividends, and reacquiring treasury shares. For each question, the assistant provides the journal entries required to properly record the transactions according to accounting principles.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Acctg 101 Final Quiz

    Uploaded by

    Andrea Tugot
    31 views5 pages
    This document contains 5 multiple choice questions from an accounting quiz. Each question provides financial information for a company and requires the student to record journal entries for transactions such as issuing stock, paying dividends, and reacquiring treasury shares. For each question, the assistant provides the journal entries required to properly record the transactions according to accounting principles.

    Original Title

    ACCTG 101 FINAL QUIZ

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document contains 5 multiple choice questions from an accounting quiz. Each question provides financial information for a company and requires the student to record journal entries for transactions such as issuing stock, paying dividends, and reacquiring treasury shares. For each question, the assistant provides the journal entries required to properly record the transactions according to accounting principles.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    31 views5 pages

    Acctg 101 Final Quiz

    Uploaded by

    Andrea Tugot
    This document contains 5 multiple choice questions from an accounting quiz. Each question provides financial information for a company and requires the student to record journal entries for transactions such as issuing stock, paying dividends, and reacquiring treasury shares. For each question, the assistant provides the journal entries required to properly record the transactions according to accounting principles.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    ACCTG 101

    FINAL QUIZ

    1. SECERN TO SEPARATE Co. started operations on January 1, 2021. Its authorized capitalization
    is ₱2,000,000 divided into 20,000 shares with par value per share of ₱100. SECERN Co. receives
    cash subscriptions for 5,000 shares at ₱120 per share. On January 31, 2021, SECERN receives
    subscription for 2,000 shares at ₱160 per share.

    Requirement: Provide the necessary journal entries.

    DATE PARTICULARS DEBIT CREDIT

    Jan. 01, 2021


    Cash 600,000
    Share Capital 500,000
    Share Premium 100,000

    Jan.31, 2021
    Cash 320,000
    Share capital 200,000
    Share Premium 100,000

    2. On January 1, 2021, the statement of financial position of LABILE ADAPTABLE Co. shows the
    following information:

    Share capital (authorized 20,000 shares with par value of 1,600,000


    ₱100)
    Share premium 320,000
    Retained earnings 1,080,000
    Total shareholders’ equity 3,000,000

    On July 1, 2021, LABILE reacquires 1,000 shares at ₱90.

    Requirements: Provide the entry on July 1, 2021 and in each of the following independent scenarios:
    a. On September 1, 2021, LABILE reissues the 1,000 treasury shares at ₱90.
    b. On September 1, 2021, LABILE reissues the 1,000 treasury shares at ₱140.
    c. On September 1, 2021, LABILE reissues the 1,000 treasury shares at ₱60.

    1
    DATE PARTICULARS DEBIT CREDIT
    July 01, 2021
    Treasury Share 90,000
    Cash 90,000
    A.
    Sept. 01,2021
    Cash 90,000
    Treasury shares 90,000

    B.
    Sept.01, 2021
    Cash 140,000
    Treasury Shares 90,000
    Share Premium - T. S 90,000

    C.
    Sept.01, 2021
    Cash 60,000
    Retained earnings 30,000
    Treasury shares 90,000

    2
    3. On April 1, 2021, the board of directors of PEAL LOUD RINGING OF BELLS Co. declared ₱50
    dividends per share to shareholders of record as of April 15, 2021 for distribution on May 1,
    2021. The shareholders’ equity of PEAL as of April 1, 2021 is as follows:

    Share capital, authorized capital 20,000 shares, ₱100 par 1,600,000


    Subscribed share capital 440,000
    Share premium 200,000
    Retained earnings 908,000
    Treasury shares (at cost of ₱120 per share) (288,000)
    Other components of equity 140,000
    Total shareholders’ equity 3,000,000

    Requirement: Provide all the pertinent entries.

    1.
    Cash dividends payable is computed as follows:
    Shares issued 16,000
    Shares subscribed 4,400
    Treasury shares - 2,400
    Outstanding shares 18,000
    Multiply by: Dividends per share x 50
    Total cash dividends declared 900,000

    DATE PARTICULARS
    DEBIT CREDIT
    April 1, 2021 Retained earnings 900,000
    Cash dividends payable 900,000

    April 15, 2021 No entry

    May 1, 2021 Cash dividends payable 900,000


    Cash 900,000

    3
    4. On April 1, 2021, DOLEFUL SAD Co. declared share dividends on a “1 share dividend for every
    10 shares held” basis to shareholders of record as of April 15, 2021 for distribution on May 1,
    2021. The market price per share on declaration date is ₱120. DOLEFUL’s shareholders’ equity
    immediately before dividend declaration is shown below:

    Share capital, authorized capital 20,000 shares, ₱100 par 1,600,000


    Subscribed share capital 440,000
    Share premium 200,000
    Retained earnings 908,000
    Treasury shares (at cost of ₱120 per share) (288,000)
    Other components of equity 140,000
    Total shareholders’ equity 3,000,000

    Requirement: Provide all the pertinent entries.

    Share dividends declared – 1 sh. for every 10 shares held. 1/10


    Percentage of share dividends declared 10%

    Shares issued 16,000


    Shares subscribed 4,400
    Treasury shares - 2,400
    Outstanding shares 18,000
    Dividends declared x 1/10
    Number of shares declared as dividends 1,800
    Par value per share x 100
    Total share dividends distributable 180,000

    DATE PARTICULARS DEBIT CREDIT

    April 1, 2021 Retained earnings 216,000


    Share dividends distributable or Stock 180,000
    Share premium 36,000

    April 15, 2021 No entry

    May 1, 2021 Share dividends distributable stock 180,000


    Share capital 180,000

    4
    5. On April 1, 2021, VELVETY SMOOTH Co. declared share dividends on a “1 share dividend for
    every 5 shares held” basis to shareholders of record as of April 15, 20x1 for distribution on May
    1, 2021. The par value of the shares is ₱100 while the market price per share on declaration date
    is ₱120. The total outstanding shares as of April 1, 2021 is 18,000.

    Requirement: Provide all the pertinent entries.

    Share dividends declared – 1 sh. for every 5 shares held 1/5


    Percentage of share dividends declared 20%

    Outstanding shares 18,000


    Dividends declared x 1/5
    Number of dividends declared 3,600
    Par value per share x 100
    Total share dividends distributable 360,000
    DEBIT CREDIT

    April 1, 2021 Retained earnings 360,000


    Share dividends distributable 360,000

    April 15, 2021 No entry

    May 1, 2021 Share dividends distributable 360,000


    Share capital 360,000

    You might also like