Dehniece Aleck V.

Mangawang
ACT1122

1. D
2. C
3. D
4. D
5. C
6. D
7. A
8. A
9. B
10. C
11. A
12. C
13. A
14. B
15. C
16. C
17. A
18. A
19. D
20. B
21. D
22. A
23. C
24. C
25. B
26. B
27. A
28. D
29. D
30. D
31. D
32. C
33. A
34. B
35. C
36. B
37. B
38. A
39. B
40. A
41. D
42. D
43. C
44. D
45. C
46. B
47. B
48. A
49. C
50. C
51. D
52. A
53. B
54. D
55. D
56. D
57. B
58. A
59. D
60. A
61. D
62. C
63. D
64. D
65. D
66. B
67. B
68. C
69. A
70. D
71. B
72. C
73. A
74. D
75. C
76. A
77. D
78. A
79. D
80. D
81. D
82. D
83. A
84. C
85. A
86. A
87. C
88. D
89. C
90. A
91. C
92. D
93. A
94. D
95. B
96. B
97. C

Use the following information for the next four (4) questions:

Share Share Retained Treasury

Date Total
Capital Premium Earnings Shares
January 1 4,000,000 1,200,000
February 1 3,000,000 600,000
July 1 1,500,000
September 15 125,000 (375,000)
December 31 (1,250,000)
Net Income 3,000,000
Total 7,000,000 1,925,000 1,750,000 (1,125,000) 9,550,000
98. B
99. A
100. C
101. C

Use the following information for the next four (3) questions:

Share Share Retained Treasury

Date Total
Capital Premium Earnings Shares
January 1 2,400,000 3,200,000
May 1 (260,000)
October 31 228,000 722,000 (950,000)
December 31 440,000 (260,000)
Net Income 4,500,000

Total 2,628,000 4,362,000 3,550,000 0 10,540,000

102. D
103. D
104. A

Share
Date
Premium
January 15 1,500,000
February 14 100,000
October 31 520,000
December 31 250,000
Total 2,370,000
 105. D
106. B
Use the following information for the next three (3) questions:

1 Cash 1,000,000
Ordinary Share Capital 1,000,000
2 Treasury Shares (5,000 x P60) 300,000
Cash 300,000
3 Issued 140,000 new ordinary shares with par of P25 as a result of a 2 for 1 split of 70,000 original
shares with a par of P150
4 Cash 120,000
Treasury Shares (3k / 10,000 x 300,000) 90,000
Share Premium – Treasury Shares 30,000
5 Cash (10K x 40) 400,000
Donated Capital 400,000
6 Profit and Loss 500,000
Retained Earnings 500,000
7 Retained Earnings 210,000
Retained Earnings appropriated for 210,000
treasury shares

Preference Share Capital 500,000

Ordinary Share Capital 3,500,000
Share Premium:
Preference Share 200,000
Ordinary Share 500,000
Treasury Share 30,000
Donated Capital 400,000 1,130,000
Retained Earnings:
Unappropriated 2,290,000
Appropriated for 210,000 2,500,000
treasury shares
Treasury Shares at cost (210,000)
Shareholder’s Equity 7,420,000
107. A
108. B
109. C

Unapproriated Appropriated
Date SC-OS SP-OS SC-PS SP-PS Total
RE RE
2018
Issuance 4,000,000 2,000,0000
Net Income 1,000,000
Dividend (200,000)
2019
Issuance 1,000,000 800,000
Issuance 750,000 450,000
Appropriation 300,000 (300,000)
Issuance 250,000 250,000
Income 2,500,000
Dividend (800,000)
Total 5,000,000 2,800,000 1,000,000 700,000 300,000 2,200,000 12,000,000
110. A
111. B
112. B
113. A
114. C
115. C
116. D
Solution:
Preference share capital (30,000 x 100) 3,000,000
Preference dividend in 2014(3,000,000 x 5%) 150,000
Preference dividend in 2015 150,000
Total preference dividend 300,000
Less: Preference dividend in 2015 100,000
Preference Dividends in arrears-December 31, 2015 200,000

117. C
Solution:
Number of shares entitled 400,000 shares
Share dividend rate 10%
Share dividend 40,000 shares
Fair value (small dividend) 80 per share
Retained earnings capitalized P3,200,000

118. A
Solution:
Number of shares entitled 200,000 shares
Share dividend rate 1/5
Share dividend 40,000 shares
Par value (large dividend) 50 per share
Retained earnings capitalized P2,000,000

119. B
Solution:
10% small dividend P225,000
25% large dividend 450,000
Total P675,000

120. D
121. A
Solution:
Retained earnings capitalized (30,000 x 10% x 90) P270,000
Share capital (30,000 x 10% x 20) 60,000
Share premium P210,000
122. A
Solution:
Retained earnings beginning balance 300,000
Net income 60,000
Appropriation for treasury shares (4,000 x 20) (80,000)
Total unappropriated 280,000

123. D
124. B
125. C
Solution:
Total dividend declared 100,000
Basic dividend for preference(30,000 x 10 x 5%)(15,000)
Basic dividend for ordinary(200,000 x 1 x 5%) (10,000)
Remaining for participation 75,000
Participation ratio of ordinary 2/5
Share of ordinary in the remaining 30,000
Basic dividend of ordinary 10,000
Total dividend for ordinary 40,000

126. D
127. B
128. B
129. A
130. C
131. D
132. A
133. D
Solution:
Preference share capital, 10% cumulative, P100 par,
40,000 shares 4,000,000
Ordinary share capital, P50 par, 200,000 shares 10,000,000
Subscribed ordinary share capital, gross 3,500,000
Treasury ordinary share, 20,000 shares at cost (1,200,000)
Share premium 3,000,000
Accumulated profit 5,000,000
Total shareholders’ equity excluding subscription receivable 24,300,000
a. Return of capital (40,000 x 110) (4,400,000)
b. Dividend for P.S. (4,000,000 x 10% x 3) (1,200,000)
Remaining for ordinary shareholders 18,700,000
Outstanding and subscribed ordinary (200,000 – 20,000 + 70,000) 250,000
Book value per share 74.8