11.) How should the excess of the subscription price over the par value of common stock subscribed be recorded? as APIC when the subscription is received as APIC when the subscription is collected as retained earnings when the subscription is received as APIC when the capital stock is issued 12.) A Corporation obtains from Prime Products a subscription to 2,000 shares of P10 par common capital stock at a price of P15 a share. The entry to record the event is: A B C D 13.) How should a corporation reflect treasury stock on its balance sheet? as part of its assets as a deduction in the stockholders’ equity section as additional paid in capital as additional shares of capital stock
11.) How should the excess of the subscription price over the par value of common stock subscribed be recorded? as APIC when the subscription is received as APIC when the subscription is collected as retained earnings when the subscription is received as APIC when the capital stock is issued 12.) A Corporation obtains from Prime Products a subscription to 2,000 shares of P10 par common capital stock at a price of P15 a share. The entry to record the event is: A B C D 13.) How should a corporation reflect treasury stock on its balance sheet? as part of its assets as a deduction in the stockholders’ equity section as additional paid in capital as additional shares of capital stock
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer with simple explanation only please. Thank you!
11.) How should the excess of the subscription price over the par value of common stock subscribed be recorded?
as APIC when the subscription is received
as APIC when the subscription is collected
as retained earnings when the subscription is received
as APIC when the capital stock is issued
12.) A Corporation obtains from Prime Products a subscription to 2,000 shares of P10 par common capital stock at a price of P15 a share. The entry to record the event is:
A
B
C
D
13.) How should a corporation reflect treasury stock on its balance sheet ?
as part of its assets
as a deduction in the stockholders’ equity section
as additional paid in capital
as additional shares of capital stock
14.) How is an increase in the number of shares as a result of a stock split recorded?
The transaction may be recorded by a memorandum notation in the general journal.
The transaction may be recorded by a memorandum notation in the common stock account
The transaction may be recorded by a memorandum notation in the general journal and in the common stock account.
There will be a transfer from the retained earnings account to the common stock account, the amount of which is equal to the par value of the new number of shares resulting from the stock split.
15.) Where the recapitalization involves a reduction in the legal capital of the corporation for the purpose of eliminating an existing deficit, or of writing down the inflated book values, the recapitalization is referred to as:
reorganization
quasi-reorganization
incorporation
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