ParCor Corpo EQ Set A

Corporation Accounting [SHARE CAPITAL AND RETAINED EARNINGS] EQ SET A
NAME:___________________________________ SECTION:____________ DATE:_________________
1. The owners of shares in stock corporation are called

a. Incorporators b. Promoters c. Members d. Stockholders
2. The stockholders or members mentioned in the Articles of Incorporation originally forming and composing the
corporation and who are signatories thereof are called
a. Incorporators b. Promoters c. Members d. Stockholders
3. The arbitrary value assigned to a share of stock is called
a. Market value b. Par value c. Liquidation value d. Book value
4. Persons who compose the corporation whether as stockholders or members are called
a. Subscribers b. Corporators c. Incorporators d. Promoters
5. The most powerful person in a corporation is the
a. Incorporator b. President c. Vice President d. Chairman of the Board
6. The amount of the stockholder’s investments is called
a. Outstanding stock b. Paid in capital c. Retained earnings d. Total stockholder’s Equity
7. Dividends shall be declared and paid out of
a. Capital stock b. Paid in capital c. Retained earnings d. Profits earned in selling no par
8. It means the preparation of financial statements for a period of less than one year
a. Financial reporting c. Year end reporting
b. Segment reporting d. Interim reporting
9. Selling expenses do not include
a. Salesmen’s salaries c. Depreciation of delivery equipment
b. Sales commission d. Accounting and legal fees
10. Administrative expenses do not include
a. Advertising c. Depreciation of office building
b. Salaries Expense of Secretary d. Insurance
11. A corporation is being organized with an authorized capital stock of P50,000. How much of this P50,000 should be
subscribed and how much must be actually be paid?
a. P12,000 and P3,125 b. P10,000 and P2,500 c. P25,000 and P6,250 d. P12,500 and P5,000
12. Jardin Corporation issued 10,000 shares of P20 par value common stock at P50 per share. The amount that would be
credited to Paid In Capital in Excess of Par Common is
a. P200,000 b. P300,000 c. P500,000 d. P700,000
13. You are given the following information: Capital stock, P80,000 (P80 par value); Additional paid In Capital, P200,000;
and Retained Earnings, P400,000. Assuming only one class of stock, the book value per share is
a. P400 b. P280 c. P80 d. P680
14. VILLA Corp’s outstanding capital stock at Dec. 31, 2004 consisted of the following:
 30,000 shares of 5% cumulative preferred stock, par value P10 per share, fully participating as to dividends. No
dividends in arrears
 200,000 shares of common stock, par value P1 per share
On Dec. 15, 2004, Villa declared dividends of P100,000. What was the amount of dividends payable to Common
stockholders?
a. P10,000 b. P34,000 c. P47,500 d. P40,000
15. MORE Corp. declared a 5% stock dividend on its 10,000 issued and outstanding shares of P2 par value common
stock, which had a fair value of P5 per share before the stock dividend was declared. This stock dividend was
distributed 60 days after the declaration date. By what amount did More’s current liabilities increase as a result of the
stock dividend declaration?
a. P0 b. P500 c. P1,000 d. P2,500
16. Luz Corp. has 100,000 shares of P20 par common stock outstanding. The stock’s market value is P37 per share. Luz
board of directors declared and distributed a 10% common stock dividend. Which of the following entries showed the
full effect of declaring and distributing the dividend?
a. Retained earnings 370,000
Stock dividend Distributable 200,000
Paid In capital in Excess of Par 170,000
b. Retained earnings 200.000
Common Stock 200,000
c. Retained earnings 170,000
Paid in Capital in excess of Par 170,000
d. Retained earnings 370,000
Common stock 200,000
Paid in capital in excess of par 170,000
17. Manuel Trade, Inc. has 100,000 shares of 7% P5 par preferred stock, and 100,000 shares of P4 par common stock
outstanding. Two years preferred dividends are in arrears. Manuel declared a cash dividend large enough to pay the
preferred dividend in arrears, the preferred dividends for the current period, and a P1.50 dividend to common. What is
the total amount of the dividend?
a. P255,000 b. P220,000 c. P150,000 d. P105,000
18. At Dec. 31, 2003 and 2004. Vela Corp. had outstanding 2,000 shares of P1,000 par value, 6% cumulative preferred
stock and 10,000 shares of P100 par value common stock. At Dec. 31, 2003, dividends in arrears on the preferred
stock were P60,000. Cash dividends declared in 2004 totaled P220,000. What amount were payable to preferred and
Common stock?
a. P120,000 and P100,000 c. P180,000 and P40,000
b. P160,000 and P60,000 d. P220,000 and P0
19. Rex Company was organized on January 1, 2014 at which date it issued 100,000 ordinary shares of P10 par value at P15 per
share. During the period January 1, 2015 through December 31, 2015, the entity reported net income of P450,000 and paid cash
dividend of P230,000. On January 10, 2015, the entity purchased 6,000 treasury shares at P12 per share. On December 31, 2015,
the entity sold 4,000 treasury shares at P8 per share and retired the remaining treasury shares. What amount should be
reported as shareholders’ equity on December 31, 2015?
20. Dayron Company had 80,000 ordinary shares outstanding in January 2015. The entity distributed a 15% stock dividend in March
and a 10% stock dividend in June. After acquiring 10,000 shares of treasury in July, the entity split the share 4 for 1 in December.
How many ordinary shares are outstanding on December 31, 2015?
21. Mary Company had 80,000 ordinary shares outstanding in January 2015. The entity distributed a 10% stock dividend in March
and a 15% stock dividend in June. After acquiring 10,000 shares of treasury in July, the entity split the share 1 for 4 in December.
How many ordinary shares are outstanding on December 31, 2015?
22. The following data pertain to Charity Corporation;

Ordinary shares, with a par value of P100,
10,000 shares issued and outstanding P1,000,000
Retained earnings 1,200,000
The following transactions took place:

June 10 Reacquired 500 ordinary shares for treasury at P80 per share.
15 75 treasury shares were sold for P8,000
20 150 treasury shares were sold for P11,250
25 175 treasury shares were sold for P18,000.
How many outstanding shares at the end of June?
23. Refer to No. 22, How many shares are considered issued?
24. The accounts were taken from the ledger of Sulong Pinoy Corporation as of December 31, 2016.
18%, Preference shares, par value of P100, authorized 10,000 shares,

issued and outstanding 8,000 shares P 800,000
Ordinary shares, no par, authorized 25,000 shares stated value of P100,
Issued 15,000 shares of which 1,000 share are in the terasury 1,500,000
Subscribed Preference shares 100,000
Subscribed Ordinary shares 50,000
Subscription Receivable – Preference shares 40,000
Subscription Receivable – Ordinary shares 20,000
Share Premium – Preference shares 10,000
Share Premium – Ordinary shares 15,000
Donated Capital – Land 75,000
Treasury Stock, at cost, 1,000 shares 120,000
Retained Earnings 165,000
How much is the Total Stockholder’s Equity of Sulong Pinoy Corp on December 31, 2016?
25. Refer to No. 24, what is SPC’s legal capital?
NAME:_________________________________ SECTION:________________ DATE:_________________

1 6 11 16 21
2 7 12 17 22
3 8 13 18 23
4 9 14 19 24
5 10 15 20 25
NAME:_________________________________ SECTION:________________ DATE:_________________
1 6 11 16 21
2 7 12 17 22
3 8 13 18 23
4 9 14 19 24
5 10 15 20 25

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Corporation Accounting [SHARE CAPITAL AND RETAINED EARNINGS] EQ SET A

NAME:___________________ SECTION: DATE:_

1. The owners of shares in stock corporation are called

22. The following data pertain to Charity Corporation;

Retained earnings 1,200,000

The following transactions took place:

18%, Preference shares, par value of P100, authorized 10,000 shares,

NAME:_________________ SECTION: DATE:_

NAME:_________________ SECTION: DATE:_

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