Delinquents

1. When there is no bidder for delinquent subscription, the subscribed shares *

will be issued to the delinquent subscriber.
will be issued in the name of the corporation.
will be reverted back to unsubscribed shares.
none of these

2. The person who is willing to pay the full amount of the balance on the subscription
together with accrued interest, cost of advertisement and expenses of sale for the
small number of shares or fraction of a share. *
delinquent subscriber
defaulting subscriber
highest bidder
lowest bidder

3. The stock are said to be ___ if the subscriber failed to pay his subscription in full. *
overdue
delinquent
issued
void

4. Subscribed shares that are offered for sale in a public auction due to failure of the
subscriber to pay its obligation are known as ___. *
treasury shares
outstanding shares
delinquent shares
public shares

5. If there is no bidder in the auction, the corporation may bid to pay for the delinquent
shares and the whole amount of shares will be considered as treasury shares of the
corporation. *
True
False
6. A domestic corporation made a call for the unpaid subscription price on its shares of
stock. There where three shareholders who were delinquent, and the data on them are
written below: Assuming that the bidders on the delinquency shares of M are A (100
shares), B (90 shares), and C (80 shares), who will be considered as the highest
bidder? *

Mr. A
Mr. B
Mr. C
None of the above

7. A domestic corporation made a call for the unpaid subscription price on its shares of
stock. There where three shareholders who were delinquent, and the data on them are
written below: Assuming that the bidders on the delinquency shares of M are A (100
shares), B (90 shares), and C (80 shares), how much will the highest bidder pay for
the delinquent shares? *

P 70,000
P 70,300
P 56,240
none of the above
8. A domestic corporation made a call for the unpaid subscription price on its shares of
stock. There where three shareholders who were delinquent, and the data on them are
written below: Assuming that the bidders on the delinquency shares of N are X (80
shares), Y (70 shares), and Z (75 shares), who will be considered as the highest
bidder? *

Mr. X
Mr. Y
Mr. Z
none of the above

9. A domestic corporation made a call for the unpaid subscription price on its shares of
stock. There where three shareholders who were delinquent, and the data on them are
written below: Assuming that the bidders on the delinquency shares of N are X (80
shares), Y (70 shares), and Z (75 shares), how many shares will be left for the
defaulting subscriber (Mr. N) when the highest bidder pays for the delinquent shares
and the share certificates are issued? *

0 shares
10 shares
5 shares
80 shares
10. A domestic corporation made a call for the unpaid subscription price on its shares
of stock. There where three shareholders who were delinquent, and the data on them
are written below: Assuming that there are no bidders for the shares of Mr. O, how
much will the corporation pay (in the form of treasury shares) for the delinquent
shares? *

P 300
P 90,000
P 90,300
none, since there is no bidder.
Dividends

1. Total stockholders' equity represents *

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a claim to specific assets contributed by the owners
the maximum amount that can be borrowed by the enterprise
a claim against a portion of the total assets of an enterprise
only the amount of earnings that have been retained in the business

2. A primary source of stockholders' equity is *

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income retained by the corporation.
appropriated retained earnings.
contributions by shareholders.
both income retained by the corporation and contributions by shareholders.

3. A journal entry is not made on the *

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date of declaration
date of record
date of payment
an entry is made on all of these dates

4. Dividends declared may be in the form of the following, except: *

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Cash Dividends
Property Dividends
Scrip Dividends
Stock Dividends
Payable Dividends

5. When cash dividends is declared, the retained earnings is decreased on the date
of *
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declaration
record
payment
retained earnings will not decrease
6. The retained earnings balance reported on the balance sheet typically is not
affected by: *
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Net Income
A prior period adjustment
Dividends paid
Appropriations

7. Dividends are decided by *

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The managers of firm
The employees of firm
The board of directors
The government

8. When a company declares cash dividend, retained earnings is decreased by the

amount of dividend on the date of *
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Declaration
Declaration or record, whichever is earlier
Record
Payment

9. On July 31, 2018, Lakers Corporation purchased 500,000 shares of Celtic

Corporation. On December 31, 2019, Lakers distributed 250,000 shares of Celtic stock
as a dividend to Lakers' shareholders. This is an example of *
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Liquidating Dividend
Property Dividend
Investment DIvidend
Share Dividend

10. A property dividend should be recorded in retained earnings at the property's *

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market value at date of declaration
book value at date of declaration
market value at date of issuance
book value at date of issuance
11. Barney Corporation had retained earnings of P529,000 at January 1 of the current
year. Net Income for the year was P2,496,000 and cash dividends of P750,000 were
declared and paid. Another P50,000 cash dividends were declared late in December,
but were unpaid at year-end. How much is the ending balance of the retained earnings
account? *
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P 1,696,000
P 2,225,000
P 2,275,000
P 3,025,000

12. The balance of retained earnings of Smart Company at the beginning of the year
was P650,000. During the year, Smart earned income of P4,500,000 and incurred
expenses of P3,800,000, dividends of P500,000 were declared and paid. What is the
balance of retained earnings? *
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P 700,000
P 1,070,000
P 850,000
P 200,000

13. Casio Corp. has the following year-end balances: Ordinary Share Capital P
1,500,000; Preference Share Capital P 1,200,000; Share Premium - Ordinary
P500,000; Share Premium - Preference P 300,000; Retained Earnings P350,000.
Compute for the Legal Capital. *
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P 2,700,000
P 3,500,000
P 3,850,000
P 2,000,000

14. Casio Corp. has the following year-end balances: Ordinary Share Capital P
1,500,000; Preference Share Capital P 1,200,000; Share Premium - Ordinary
P500,000; Share Premium - Preference P 300,000; Retained Earnings P350,000.
Compute for the Contributed Capital *
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P 2,300,000
P 3,000,000
P 3,500,000
P 2,700,000
15. Casio Corp. has the following year-end balances: Ordinary Share Capital P
1,500,000; Preference Share Capital P 1,200,000; Share Premium - Ordinary
P500,000; Share Premium - Preference P 300,000; Retained Earnings P350,000.
Compute for the total shareholders' equity. *
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P 3,550,000
P 3,850,000
P 2,650,000
answer not given