Identify whether each of the following scenario is an advantage or a disadvantage ofthe corporate form of business. Justify your answer.A.1.Green Company can have many owners in their business.Shareholders of White Company need to pay for corporate tax on dividendearning to tax authority.Yellow Company can buy and sell property based on board of director decisionmaking.The shareholder of Black Company can buy and sell shares without affectingthe company operation in daily business operation.Red Company must comply with Malaysian Companies Act 2016.President of Mawar Company can delegate the responsibility and authority for2.3.4.5.6.company.The accounts and balances that follow are from Comel Bhd's records on 31 December2020.ItemsPreferred Share, 9 percent cumulative, 2,000 shares issued andoutstandingOrdinary Share, 16,000 shares issued, and 15,500 shares outstandingRetained EarningsTreasury Share, Ordinary (500 shares, at cost)RM200,000160,00030,00016,000REQUIRED:Prepare the shareholders' equity section of Comel Bhd's Statement of Financial Positionas at 31 December 2020.C.Hayfa Bhd has 50,000 shares, RM50,000 for ordinary share outstanding. Preparejournal entries to record the following transactions as they relate to the company'sordinary share:Date11 JuneTransactionsDeclared a RM0.50 per share cash dividend on ordinary share to bepaid on 8 August to shareholders of record on 30 June.30 JuneDate of record.8 August8 September Issued additional 30,000 ordinary shares for RM1.20 per share.Paid the cash dividend declared on 11 June.B.

The answer for the practical question is discussed hereunder : Corporate form of business came into…

Identify whether each of the following scenario is an advantage or a disadvantage of the corporate form of business. Justify your answer. 1. Green Company can have many owners in their business. Shareholders of White Company need to pay for corporate tax on dividend earning to tax authority. Yellow Company can buy and sell property based on board of director decision making. The shareholder of Black Company can buy and sell shares without affecting the company operation in daily business operation. Red Company must comply with Malaysian Companies Act 2016. President of Mawar Company can delegate the responsibility and authority for 2. 3. 4. 5. 6. company.

Identify whether each of the following scenario is an advantage or a disadvantage of the corporate form of business. Justify your answer. 1. Green Company can have many owners in their business. Shareholders of White Company need to pay for corporate tax on dividend earning to tax authority. Yellow Company can buy and sell property based on board of director decision making. The shareholder of Black Company can buy and sell shares without affecting the company operation in daily business operation. Red Company must comply with Malaysian Companies Act 2016. President of Mawar Company can delegate the responsibility and authority for 2. 3. 4. 5. 6. company.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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