1.

Shrek Inc., had issued subscriptions for common shares on March 1, 2020. 40% of the subscription was to be paid by the subscribers on April 1 and the balance on June 1. The company would thereafter issue the shares on June 15.

On April 1, the company received the funds for the first instalment and prepared the following journal entry to record the transaction:

DR	Cash	$446,400
CR	Share Subscription Receivable		$446,400

On June 1, 2,000 subscribers failed to pay the second instalment and their subscriptions were forfeited. The company received the funds due on the second instalment from the remaining subscribers and prepared the following journal entry to record the transaction:

DR Cash $648,000

CR Share Subscription Receivable $648,000

For how many shares were subscriptions issued by Shrek on March 1, 2020?

Select one:

a.

62,000.

b.

60,000.

c.

64,000.

d.

37,200.

e.

None of the above.

2.

Wheaton Inc. had the following balances as of December 31, 2021:

-Contributed surplus- common share repurchase $ 44,000

-Retained Earnings $ 400,000

-Common shares- 100,000 issued, outstanding $1,414,000

During 2022, Wheaton had the following equity transactions:

Mar. 1- issued 10,000 common shares in exchange for land appraised at $170,000 when the common shares market price was $16 each;

July 1- repurchased 8,000 common shares- this resulted in a reduction of contributed surplus-common share repurchase by $44,000 and retained earnings by $4,000.

On July 1, how much was paid per share on the re-purchase?

Select one:

a.

20.40.

b.

14.40.

c.

19.90.

d.

20.31.

e.

None of the above.

3.

Assuming the same data as in Question 25 except that the average issue price per common share re-purchased was $25.

By how much would shareholders equity be reduced?

Select one:

a.

$163,200.

b.

$200,000.

c.

$248,000.

d.

$244,000.

e.

$204,000.