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    Answers - CM5

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    misssunshine112
    The document provides accounting entries for Millenium Tires Corporation, which was authorized to issue 50,000 ordinary shares at P50 par and 20,000 8% preference shares at no-par stated value of P20. It records the issuance of shares for cash, land, and organization costs, as well as the collection of subscription receivables. The entries also include the sale of delinquent shares and the acquisition of treasury shares.

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    © All Rights Reserved

    Answers - CM5

    Uploaded by

    misssunshine112
    175 views5 pages
    The document provides accounting entries for Millenium Tires Corporation, which was authorized to issue 50,000 ordinary shares at P50 par and 20,000 8% preference shares at no-par stated value of P20. It records the issuance of shares for cash, land, and organization costs, as well as the collection of subscription receivables. The entries also include the sale of delinquent shares and the acquisition of treasury shares.

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    cm5

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    The document provides accounting entries for Millenium Tires Corporation, which was authorized to issue 50,000 ordinary shares at P50 par and 20,000 8% preference shares at no-par stated value of P20. It records the issuance of shares for cash, land, and organization costs, as well as the collection of subscription receivables. The entries also include the sale of delinquent shares and the acquisition of treasury shares.

    Copyright:

    © All Rights Reserved
    175 views5 pages

    Answers - CM5

    Uploaded by

    misssunshine112
    The document provides accounting entries for Millenium Tires Corporation, which was authorized to issue 50,000 ordinary shares at P50 par and 20,000 8% preference shares at no-par stated value of P20. It records the issuance of shares for cash, land, and organization costs, as well as the collection of subscription receivables. The entries also include the sale of delinquent shares and the acquisition of treasury shares.

    Copyright:

    © All Rights Reserved
    of 5

    Answers – CM 5

    Alvikana
    Compute for the following:
    1.     Authorized shares 50,000
    2.     Issued shares 30,000
    3.     Unissued shares 20,000
    4.     Outstanding shares 29,000
    5.     Treasury shares 1,000
    6.     Subscribed shares 5,000
    7.     Unsubscribed shares 15,000

    Amity

    1. Amity Corporation is authorized to issue 20,000 shares at no-par P50 stated value.

    2. Cash 220,000
    Ordinary Shares 200,000
    Issuance of 4,000 shares

    3. Equipment 60,000
    Ordinary Shares 50,000
    Share Premium- Ordinary 10,000
    Issued 1,000 shares

    4. Subscription Receivable 142,500


    Subscribed Ordinary Share 125,000
    Share Premium- Ordinary 17,500
    Received subscription for 2,500 shares

    Cash 35,625
    Subscription Receivable 35,625
    Collection of down payment

    5. Cash 106,000
    Ordinary Shares 100,000
    Share Premium - Ordinary 6,000
    Issued 2,000 shares
    Post Tests:
    True or False Matching Multiple Choice
    1.T 1. F 11. Q 1. D
    2.N 2. G 12. A 2. B
    3. T 3. U 13. R 3. C
    4. F 4. C 14. D 4. C
    5. T 5. E 15. S 5. D
    6. F 6. I 16. P 6. A
    7. F 7. L 17. O 7. A
    8. T 8. B 18. K 8. no more minimum capital under the Revised Corp Code
    9. T 9. M 19. R 9. B
    10. T 10. N 20. J 10. C
    11. B
    12. C - no par, no stated value does not recognize any Share premium, all
    amounts received are credited to Ordinary Shares
    13. A
    14. D
    15. B
    16. 375,000
    17. D
    18. D
    19. C
    20. C - ordinary shares

    Naruto
    1. Subscription Receivable 225,000
    Cash 75,000
    Subscribed Ordinary Shares 300,000
    Subscription

    2. Equipment 150,000
    Ordinary Shares 120,000
    Share Premium 30,000
    Issued 10,000 shares

    3. Cash 75,000
    Subscription Receivable 75,000
    First installment on the subscription

    4. Organization Cost 25,000


    Ordinary Share 24,000
    Share Premium 1,000
    Issued 2,000 shares

    5. Cash 75,000
    Subscription Receivable 75,000
    Second installment on the subscription

    6. Cash 75,000

    Ordinary Shares 60,000


    Share Premium 15,000
    Issued 5,000 shares

    7. Cash 75,000
    Subscription Receivable 75,000
    Final installment on the subscription

    Subscribed Ordinary Shares 300,000


    Ordinary Share 300,000
    Issued 25,000 shares

    Answers – CM 6

    True or False
    1. F 11. F
    2. T 12. F
    3. T 13. F
    4. F 14. T
    5. F 15. T
    6. F 16. T
    7. T 17. T
    8. T 18. T
    9. F 19. T
    10. T 20. T
    Jan-15 Millenium Tires Corporation was authorized to issue 50,000 ordinary shares
    at P50 par and to issue 20,000 8% preference shares at no-par stated value
    of P20.

    17 Subscription Receivable 750,000


    Subscribed Ordinary 750,000
    Subscription of 25,000 shares

    17 Cash 375,000
    Subscription Receivable 375,000
    Received 50% down payment

    20 Cash 66,000
    Preferrence Share 60,000
    Share Premium - Preferrence 6,000
    Issuance of 3,000 shares

    25 Land 175,000
    Preferrence Shares 140,000
    Share Premium - Preferrence 35,000
    Issuance of 7,000 shares

    Feb-01 Cash 187,500


    Subscription Receivable 187,500
    Received first installment

    5 Subscription Receivable 50,000


    Subscribed Preference 40,000
    Share Premium - Preference 10,000
    Subscription of 2,000 shares

    5 Cash 25,000
    Subscription Receivable 25,000
    Received 50% down payment

    20 Organization Cost 50,000


    Ordinary Shares 50,000
    Issued 1,000 shares

    Mar-01 Cash 187,500


    Subscription Receivable 187,500
    Received final installment

    1 Subscribed Ordinary 750,000


    Ordinary Share 750,000
    Issued 15,000 shares

    15 Cash 30,000
    Preference Share 20,000
    Share Premium - Preference 10,000
    Issuance of 1,000 shares

    May-01 Due from Highest Bidder 25,000


    Subscription Receivable 25,000
    Delinquent Shares

    8 Due from Highest Bidder 300


    Cash 300
    Delinquent shares expenses

    Jun-01 Cash 25,300


    Due from Highest Bidder 25,300
    Sold delinquent shares

    15 Treasury Shares 51,000


    Cash 51,000
    Acquired 1,000 treasury shares

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