On January 1, 20xx, Swenson Corporation had 40,000 shares of P10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at P20.00 per share. On February 1, 20xx, Swenson purchased 2,000 shares of treasury stock for P24 per share and later sold the treasury shares for P21 per share on March 1, 20xx.

a. debit to a loss account for P6,000

b. debit to Treasury Stock for P48,000.

c. credit to Treasury Stock for P48,000

d. credit to a gain account for P6,000.

Treasury stock which was purchased for P3,000 is sold for P3,500. As a result of these two transactions combined *

a. equity will be increased by P3,500

b. stockholders' equity will be increased by P500

c. income will be increased by P500

d. stockholders' equity will not change

The JJJ Corporation has the following classes of share capital outstanding as of December 31, 2020:Ordinary Share Capital, P20 par value, 20,000 shares outstandingPreference Share Capital, 6%, PI00 par value, cumulative, 2,000 shares outstandingNo dividends were paid on preference shares for 2018 and 2019. On December 31, 2020, a total cash dividend of P200,000 was declared. How much dividends will be received by preferred shareholders *

a. P 24,000

b. P12,000

c. P 36,000

d. P 164,000

Treasury stock that had been purchased for P6,400 last month was reissued this month for P8,500. The journal entry to record the reissuance would include a credit to *

a. Paid-In Capital from Treasury Stock for P2,100

b. Treasury Stock for P8,500

c. Paid-In Capital from Treasury Stock for P8,500

d. Paid-In Capital in Excess of Par/Common for P2,100

Rising Sun Corporation had the following financial information for the year ended 2020: Cash P100,000; Accounts receivable P250,000; Inventory P250,000; Equipment P300,000; Accounts payable: P125,000; 8 year Loans payable P500,000; SHE: P275,000. Sales:P2,000,000; Cost of goods sold: P1,500,000; Expenses:P180,000. Based on the given data, what is the company's collection period?

a. 60

b. 45

c. 35

d. 75

The Dayton Corporation began the current year with a retained earnings balance of P25,000. During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of P3,000 on equipment. Also, during the current year, the company earned net income of P12,000 and declared cash dividends of P5,000. Compute the year end retained earnings balance. *

a. P29,000

b. P39,000

c. P45,000

d. P35,000

When a corporation pays dividends, the three relevant dates for dividends occur in this order:

a. date of record, date of declaration, date of payment

b. date of payment, date of declaration, date of record

c. date of declaration, date of payment, date of record

d. date of declaration, date of record, date of payment

The par value per share of common stock represents

a. the minimum selling price of the stock established by the articles of incorporation.

b. the amount of dividends per share to be received each year

c. the minimum amount the stockholder will receive when the corporation is liquidated

d. an arbitrary amount established in the articles of incorporation

A corporation has 50,000 shares of P28 par value stock outstanding that has a current market value of P150. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately

a. P600.00

b. P7.00

c. P37.50

d. P112.00

Which of the following amounts should be disclosed in the stockholders' equity section of the balance sheet?

a. the number of shares of common stock outstanding

b. the number of shares of common stock issued

c. the number of shares of common stock authorized

d. all of the above