Answers – CM 5

Alvikana
Compute for the following:
1.     Authorized shares 50,000
2.     Issued shares 30,000
3.     Unissued shares 20,000
4.     Outstanding shares 29,000
5.     Treasury shares 1,000
6.     Subscribed shares 5,000
7.     Unsubscribed shares 15,000

Amity

1. Amity Corporation is authorized to issue 20,000 shares at no-par P50 stated value.

2. Cash 220,000
Ordinary Shares 200,000
Issuance of 4,000 shares

3. Equipment 60,000
Ordinary Shares 50,000
Share Premium- Ordinary 10,000
Issued 1,000 shares

4. Subscription Receivable 142,500

Subscribed Ordinary Share 125,000
Share Premium- Ordinary 17,500
Received subscription for 2,500 shares

Cash 35,625
Subscription Receivable 35,625
Collection of down payment

5. Cash 106,000
Ordinary Shares 100,000
Share Premium - Ordinary 6,000
Issued 2,000 shares
Post Tests:
True or False Matching Multiple Choice
1.T 1. F 11. Q 1. D
2.N 2. G 12. A 2. B
3. T 3. U 13. R 3. C
4. F 4. C 14. D 4. C
5. T 5. E 15. S 5. D
6. F 6. I 16. P 6. A
7. F 7. L 17. O 7. A
8. T 8. B 18. K 8. no more minimum capital under the Revised Corp Code
9. T 9. M 19. R 9. B
10. T 10. N 20. J 10. C
11. B
12. C - no par, no stated value does not recognize any Share premium, all
amounts received are credited to Ordinary Shares
13. A
14. D
15. B
16. 375,000
17. D
18. D
19. C
20. C - ordinary shares

Naruto
1. Subscription Receivable 225,000
Cash 75,000
Subscribed Ordinary Shares 300,000
Subscription

2. Equipment 150,000
Ordinary Shares 120,000
Share Premium 30,000
Issued 10,000 shares

3. Cash 75,000
Subscription Receivable 75,000
First installment on the subscription

4. Organization Cost 25,000

Ordinary Share 24,000
Share Premium 1,000
Issued 2,000 shares

5. Cash 75,000
 Subscription Receivable 75,000
Second installment on the subscription

6. Cash 75,000

Ordinary Shares 60,000

Share Premium 15,000
Issued 5,000 shares

7. Cash 75,000
Subscription Receivable 75,000
Final installment on the subscription

Subscribed Ordinary Shares 300,000

Ordinary Share 300,000
Issued 25,000 shares

Answers – CM 6

True or False
1. F 11. F
2. T 12. F
3. T 13. F
4. F 14. T
5. F 15. T
6. F 16. T
7. T 17. T
8. T 18. T
9. F 19. T
10. T 20. T
Jan-15 Millenium Tires Corporation was authorized to issue 50,000 ordinary shares
at P50 par and to issue 20,000 8% preference shares at no-par stated value
of P20.

17 Subscription Receivable 750,000

Subscribed Ordinary 750,000
Subscription of 25,000 shares

17 Cash 375,000
Subscription Receivable 375,000
Received 50% down payment

20 Cash 66,000
Preferrence Share 60,000
Share Premium - Preferrence 6,000
Issuance of 3,000 shares

25 Land 175,000
Preferrence Shares 140,000
Share Premium - Preferrence 35,000
Issuance of 7,000 shares

Feb-01 Cash 187,500

Subscription Receivable 187,500
Received first installment

5 Subscription Receivable 50,000

Subscribed Preference 40,000
Share Premium - Preference 10,000
Subscription of 2,000 shares

5 Cash 25,000
Subscription Receivable 25,000
Received 50% down payment

20 Organization Cost 50,000

Ordinary Shares 50,000
Issued 1,000 shares

Mar-01 Cash 187,500

Subscription Receivable 187,500
Received final installment

1 Subscribed Ordinary 750,000

 Ordinary Share 750,000
Issued 15,000 shares

15 Cash 30,000
Preference Share 20,000
Share Premium - Preference 10,000
Issuance of 1,000 shares

May-01 Due from Highest Bidder 25,000

Subscription Receivable 25,000
Delinquent Shares

8 Due from Highest Bidder 300

Cash 300
Delinquent shares expenses

Jun-01 Cash 25,300

Due from Highest Bidder 25,300
Sold delinquent shares

15 Treasury Shares 51,000

Cash 51,000
Acquired 1,000 treasury shares