Knicks Corporation was organized on January 1, 2018 with authorized capital of P 2,000,000, P 20 par value. Subsequently, incorporators subscribed for 25,000 shares at P 24. How much must be paid up upon subscription to comply with the requirement of the Securities and Exchange Commission?Required to answer. Single choice. a. P125,000 b. P500,000 c. P600,000 d. P150,000
Knicks Corporation was organized on January 1, 2018 with authorized capital of P 2,000,000, P 20 par value. Subsequently, incorporators subscribed for 25,000 shares at P 24. How much must be paid up upon subscription to comply with the requirement of the Securities and Exchange Commission?Required to answer. Single choice. a. P125,000 b. P500,000 c. P600,000 d. P150,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Knicks Corporation was organized on January 1, 2018 with authorized capital of P 2,000,000, P 20 par value. Subsequently, incorporators subscribed for 25,000 shares at P 24. How much must be paid up upon subscription to comply with the requirement of the Securities and Exchange Commission?Required to answer. Single choice.
a. P125,000
b. P500,000
c. P600,000
d. P150,000
3. On June 1, 2015, Golden Warriors Corporation declared a share capital dividend entitling its shareholders to one additional share for each share held. At the time the dividend was declared, the market value was P 100 per share and the par value was P 50 per share. On this date, Golden had 65,000 shares issued and 5,000 shares in the treasury. What entry should Golden make to record this June 1 transaction?Required to answer. Single choice.
3. On June 1, 2015, Golden Warriors Corporation declared a share capital dividend entitling its shareholders to one additional share for each share held. At the time the dividend was declared, the market value was P 100 per share and the par value was P 50 per share. On this date, Golden had 65,000 shares issued and 5,000 shares in the treasury. What entry should Golden make to record this June 1 transaction?Required to answer. Single choice.
a. debit Retained earnings -P6,000,000; credit Share Capital Dividend Distributable-P3,000,000; credit Paid in Capital from Share CapitalDividends-P3,000,000
b. debit Retained earnings-P6,500,000; credit Share Capital Dividend Distributable-P3,250,000; credit Paid in Capital from Share Capital Dividends-P3,250,000
c. debit Retained earnings-P3,250,000; credit Share Capital Dividend Distributable-P3,250,000;
d. debit Retained earnings-P3,000,000; credit Share Capital DividendDistributable-P3,000,000;
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