The promoters of companies which offer their shares for public subscription shall subscribe:Neither less than 20% nor more than 60% of company sharesNeither less than 30% nor more than 60% of company sharesNeither less than 10% nor more than 50% of company sharesNeither less than 30% nor more than 50% of company shares

An individual or an organization which helps a firm in raising money are known as promoters. Money…

Answered: The promoters of companies which offer…

Business

Finance

The promoters of companies which offer their shares for public subscription shall subscribe:

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 3C

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1. The following list of balances appears, amongst others, in the accounting records of VanDerZon Ltd on 31 December 2020: R Ordinary share capital (shares issued at R0,50 each) Proceeds of 1 500 000 ordinary shares issued on 31 October 2020 5 000 000 1 125 000 The following decision that must still be recorded was ratified by the directors, on 31 December 2020: Capitalisation shares must be issued to the ordinary shareholders that are registered in the share register on 31 December 2020, in the ratio of one ordinary share for every five ordinary shares held at R0,65 per share. Which one of the following options represents the Rand-value of the shares that must be capitalised? 1. R520 000 2. R1 150 000 3. R1 495 000 4. R2 550 000
Which of the following statement is True for Preference shares? a. The company cannot raise funds unless it is authorized by the bank b. The company can raise only 50% of finance after it is approval c. The company can raise maximum 90% of finance after it is approval d. The company can raise funds if it is authorized by its articles for suc
A corporation issued shares with par value of P 200.00, subsequently, the corporation purchased the share at par value. If the shares are sold by the corporation for P 150.00 per share, N subscribed for 100 shares of the corporation and paid the 70 shares. 2.2 What will be the document to be used, is it a subscription contract or pre-incorporation contract. Explain.
When ordinary shares are sold on subscription * a. The Ordinary Shares account is credited when the subscription price has been fully paid and the share is issued. b. The Ordinary Shares account is credited when the subscription contract is signed and a down payment is received. c. The Ordinary Shares account is not used. Shares issued on subscription are credited to Subscribed Ordinary Shares, a permanent shareholders’ equity account. d. A shareholders’ equity account called Subscriptions Receivable is used to record the par value of the shares issued.
1. The following list of balances appears, amongst others, in the accounting records ofVanDerZon Ltd on 31 December 2020:ROrdinary share capital (shares issued at R0,50 each) 5 000 000Proceeds of 1 500 000 ordinary shares issued on 31 October 2020 1 125 000The following decision that must still be recorded was ratified by the directors, on31 December 2020:Capitalisation shares must be issued to the ordinary shareholders that are registered in theshare register on 31 December 2020, in the ratio of one ordinary share for every fiveordinary shares held at R0,65 per share.Which one of the following options represents the Rand-value of the shares that must becapitalised?1. R520 0002. R1 150 0003. R1 495 0004. R2 550 0002. Purco Ltd underwrites 65% of an issue of 750 000 ordinary shares at R15 each inKarce Ltd. The underwriting commission is 7,5% and the public takes up 680 000 shares.Which one of the following amounts will be the liability of the underwriter?1. R682 5002. R850 0003. R1 050…
Magbarkada Corporation hire promoters to procure subscriptions for the corporation. As per Articles of Incorporation the corporation has an authorized share capital of P60,000. How much shares should be subscribed and actually paid as per SEC requirement? Amount Subscribed Amount Paid a. P 15,000 P 5,000 b. P 30,000 P 6,000 c. P 15,000 P 3,750 d. P 12,000 P 3,000
Issued shares are the number of O authorized shares that have been sold. O shares a corporation is legally able to sell. shares sold each year by the corporation. O authorized shares in the corporation's articles of incorporation.
The state charter allows a corporation to issue only a certain number of shares of each class of stock. This amount of stock is called a.issued stock b.treasury stock c.authorized stock d.outstanding stock
Authorized shares are the a) Number of shares that have been distributed to shareholders b) Total number of shares that can be issued by the company at any time c) Number of shares that are owned by shareholders at the balance sheet date d) Number of shares the company has repurchased
Select the best term for each definition below. Definitions 1 Shares held by investors (shares issued that have not been repurchased by the corporation) 2. Shares that have been sold to investors 3. Shares of a company's own stock it has repurchased 4. Shares available to sell, stated in the company's articles of incorporation 5 Shares that have preference over common stockholders to receive dividends Terms
The charter of a corporation provides for the issuance of 95,735 shares of common stock. Assume that 43,241 shares were originally issued and 3,458 were subsequently reacquired. What is the amount of cash dividends to be paid if a $1 per share dividend is declared? Select the correct answer. a-$43,241 b-$95,735 c-$3,458 d-$39,783
Authorized stock represents the: number of shares that are currently held by stockholders. number of shares that have been sold. number of shares that have been repurchased by the corporation. maximum number of shares that can be issued.