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- A corporation is being organized with an authorize share capital of P40,000. How much of this P40,000 should be subscribed and how much must be actually paid? a. P 10,000; P 2,500 b. P 15,000; P 5,000 c. P 10,000 ; P 5,000 d. P 15,000; P 2,500 If a corporation reissued at P200 per share 100 shares of treasury stock that it had previously acquired for P280 per share and there wasn’t any Share Premium – Treasury, it would debit a. Loss on sale of treasury stock for P 8,000 b. Share Premium – Ordinary for P 8,000 c. Retained earnings for P 8,000 d. Treasury stock for P 8,000Magbarkada 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 3,000Which of the following BEST explains the difference between a corporation and an LLC? a) LLCs are limited to 100 shareholders. b) LLC owners are called members. c) LLC passive income limit is 25%. d) LLCs require an annual report.
- Roses Corporation is authorized to issue 500,000 shares of Ordinary Share Capital, P100 par value. To comply with the required subscription of the Securities and Exchange Commission. a. How many shares must be subscribed at the time of incorporation? b. Using data in number 1, assuming the minimum required subscription was received at P110, how much subscription must be paid up?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.The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information. Issued 60%shares of class A common stock. Stock has par value of $48.00 per share and was issued at $105.00 per share. (Please refer to table below and use only the info in line with your first name initial in the blank/underlined space). Issued 60%shares of no-par class B stock. Issue Price $98.00 Issued 20%shares of preferred stock at…
- The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information. Issued 60%shares of class A common stock. Stock has par value of $48.00 per share and was issued at $105.00 per share. (Please refer to table below and use only the info in line with your first name initial in the blank/underlined space). Issued 60%shares of no-par class B stock. Issue Price $98.00 Issued 20%shares of preferred stock at…The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information. a. Issued 40% shares of class A common stock. Stock has par value of $45 per share and was issued at $62 per share. b. Issued 40% shares of no-par class B stock. (Issue price is at $60.00) C. Issued 30% shares of preferred stock at par value (Par value - $125). d. Exchanged 40% shares of class A common stock for Office Furniture and…The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information . Issued 40% of authorized shares of class A common stock. Stock has par value of $45 per share and was issued at $62 per share. Issued at $60, 40% of authorized shares of no-par class B stock. Issued 30% of authorized shares of preferred stock at par value $125. Exchanged 40% of authorized shares of class A common stock for Office…
- The Cowher Corporation has a capital structure that consists of 20% debt, 35% preferred stock, and 45% common stock. For common stock, 10% for preferred stock, and 5% for debt, the flotation costs are 9%, 10%, and 5%, respectively. The rate of corporation tax is 34%. What is the cost of flotation on a weighted average basis?Three different plans for financing an $80,000,000 corporation are under consideration by its organizers. Under each of the following plans, the securities will be issued at their par or face amount, and the income tax rate is estimated at 40% of income: Please see the attachment for details: Instructions1. Determine for each plan the earnings per share of common stock, assuming that the income before bond interest and income tax is $10,000,000.2. Determine for each plan the earnings per share of common stock, assuming that the income before bond interest and income tax is $6,000,000.3. Discuss the advantages and disadvantages of each plan.Roses Corporation is authorized to issue 500,000 shares of Ordinary Share Capital, P100 par value. To comply with the required subscription of the Securities and Exchange Commission. How many shares must be subscribed at the time of incorporation?Using the data, assuming the minimum required subscription was received at P110, how much subscription must be paid up?