1. On Jan. 2, 2020, XYZ Corp. received certificate of incorporation and has 50,000 authorized ordinary shares of P5 par value with initial issuance of 20,000 shares at P11 per share. On July 28, it repurchased 5,000 ordinary shares at P16 per share. On Dec 5, it reissued the 5,000 treasury shares for P19 per share. How many shares are authorized, issued, and outstanding on July 28?

a. 50,000; 20,000; 15,000

b. 20,000; 20,000; 15,000

c. 50,000; 20,000; 20,000

d. 50,000; 15,000; 15,000

(2) On Jan. 2, 2020, XYZ Corp. received certificate of incorporation and has 50,000 authorized ordinary shares of P5 par value with initial issuance of 20,000 shares at P11 per share. On July 28, it repurchased 5,000 ordinary shares at P16 per share. On Dec 5, it reissued the 5,000 treasury shares for P19 per share. The reissuance of the 5,000 treasury ordinary shares on Dec. 5 WILL NOT include

a. debit to cash for P95,000

b. credit to Ordinary Share for P80,000

c. credit to Treasury Share for P80,000

d. credit to Share Premium for P15,000

(3) Ms. Dela Cruz subscribes to buy 2,000 ordinary shares with P10 par value of ABC Corp for P22 per share. Immediately, she paid P4 per share and the remaining P18 per share will be paid 30 days after. Which of the following should not be done by ABC Corp.?

a. Share Premium account will be credited for P24,000.

b. Subscribed Ordinary Share account will be debited for P20,000.

c. Subscription Receivable will have balance of P36,000 after receiving the initial payment.

d. Cash account will be debited for P8,000.

(4) If Hope Corp. issued 200,000 ordinary shares of P1 par value at P15 and repurchases its own 5,000 ordinary shares at P20, using the cost method of accounting treasury shares

a. Share Premium - Ordinary will decrease by P25,000.

b. total shareholders' equity will decrease by P100,000.

c. total assets will decrease by P25,000.

d. profit for the year will decrease by P100,000.

(5) On Jan. 18, 2020, XYZ Corp. issued 2,000 Convertible Preference Shares with P100 par value for P110 per share. One share of preference share can be converted into 3 XYZ Corp. ordinary share with P25 par value. On Dec. 29, 2020, when the market value of ordinary shares was P40 per share, all the preference shares were converted. What was the effect of conversion on total shareholders' equity?

a. Cannot be determined.

b. Increase

c. No effect

d. Decrease

(6) Subscription Receivable is generally classified as

a. a revenue account.

b. a liability account.

c. a shareholders' equity account.

d. an asset account.

(7) Which of the following statements is correct?

a. XYZ Corp. received land with cost P100,000 and fair market value of P200,000 in exchange for 10,000 shares with P10 par value and fair market value of P15 per share. The land account will be debited for P150,000.

b. On Jan. 15, 2021, Edge Corp. issued 2,000 ordinary shares at P5 par value. On January 18, 2021, the entity's attorney accepted 5,000 ordinary shares in settlement for legal services with fair value of P60,000. Share premium will increase on Jan. 18, 2021.

c.Hope Corporation issued 2,000 ordinary shares of P5 par value to compensate Mr. Right's 500 hours of services usually billed at P180 per hour. Ordinary Share account will be debited for P10,000.

d. ABC Corp. will debit share premium for the excess of the par value when the entity issues 10,000 ordinary shares with P10 par value at P13 per share.

(8) Authorized shares minus unissued shares is issued shares. Outstanding shares and treasury shares is

a. unissued shares.

b.subscribed shares.

c. issued shares.

d. authorized shares.

(9) When ABC Corp. reduces the par value of the ordinary shares, what is the effect on share premium and retained earnings?

a. No effect, no effect.

b. Increase, no effect.

c. No effect, increase.

d. Increase, increase

(10) Hope Company issues 15,000 ordinary shares with P5 par value in acquiring the building. The building has a fair value of P500,000 and Hope's ordinary shares are selling for P35 per share. The building will be recorded at

a. P75,000

b. P500,000

c. P525,000

d. P450,000

Please provide an explanation.