1.On December 31, 2021, GWI Corporation reported 800,000 common shares outstanding and 2,000,000 common shares authorized. The corresponding common share capital was reported at $5,234,600. Assume that on March 1, 2022, GWI issued 12,000 common shares to OIL, Inc., in exchange for equipment with a fair market value of $130,000. The board of directors determined the appropriate market value per share as $7. On July 1, Marz purchased 20,000 of its shares in the market at $6.10 each and cancelled them. What will be the revised amount of the common share capital following these transactions? a. $5,232,467. b. $5,124,000. c. $5,187,600. d. $5,198,720. e. None of the above but $ . Use the information as follows to respond to Questions 2 and 3: On June 30, 2020, Tell Inc's reported its capital accounts as follows: Common Shares, no par, 40,000 shares outstanding $1,600,000 Retained Earnings 3,200,000 2. If a $2 per share cash dividend were declared but not paid. The capital accounts’ balances would show revised balances as follows: a. Common Shares: $1,520,000 and Retained Earnings: $3,280,000. b. Common Shares: $1,600,000 and Retained Earnings: $3,120,000. c. Common Shares: $1,600,000 and Retained Earnings: $3,200,000. d. Common Shares: $1,520,000 and Retained Earnings: $3,120,000. e. None of the above. 3. A 10% stock dividend was declared and distributed. Just prior to the date of declaration, the shares were traded at $65 per share. The capital accounts’ balances would show revised balances as follows: a. Common Shares: $1,760,000; Retained Earnings: $2,940,000 and Contributed Surplus: $100,000. b. Common Shares: $1,860,000 and Retained Earnings: $2,940,000. c. Common Shares: $1,836,364 and Retained Earnings: $2,963,636. d. Common Shares: $1,760,000 and Retained Earnings: $3,460,000. e. None of the above.
1.On December 31, 2021, GWI Corporation reported 800,000 common shares outstanding and 2,000,000 common shares authorized. The corresponding common share capital was reported at $5,234,600. Assume that on March 1, 2022, GWI issued 12,000 common shares to OIL, Inc., in exchange for equipment with a fair market value of $130,000. The board of directors determined the appropriate market value per share as $7. On July 1, Marz purchased 20,000 of its shares in the market at $6.10 each and cancelled them. What will be the revised amount of the common share capital following these transactions?
a. $5,232,467. b. $5,124,000. c. $5,187,600. d. $5,198,720. e. None of the above but $ .
Use the information as follows to respond to Questions 2 and 3:
On June 30, 2020, Tell Inc's reported its capital accounts as follows: Common Shares, no par, 40,000 shares outstanding $1,600,000
a. Common Shares: $1,520,000 and Retained Earnings: $3,280,000.
b. Common Shares: $1,600,000 and Retained Earnings: $3,120,000.
c. Common Shares: $1,600,000 and Retained Earnings: $3,200,000.
d. Common Shares: $1,520,000 and Retained Earnings: $3,120,000.
e. None of the above.
3. A 10% stock dividend was declared and distributed. Just prior to the date of declaration, the shares were traded at $65 per share. The capital accounts’ balances would show revised balances as follows:
a. Common Shares: $1,760,000; Retained Earnings: $2,940,000 and Contributed Surplus: $100,000.
b. Common Shares: $1,860,000 and Retained Earnings: $2,940,000.
c. Common Shares: $1,836,364 and Retained Earnings: $2,963,636.
d. Common Shares: $1,760,000 and Retained Earnings: $3,460,000.
e. None of the above.
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