Subject: Ordinary & Preference Share: Corporation

1. Millman's Corp issued 10,000 shares of its $1 par value ordinary shares for a building. The building has a fair value of $500,000. Millman's ordinary shares is currently selling for $45 per share. Millman's corp should record the building at

a. $10,000 b. $440,000 c. $450,000 d. $500,000

----------------------- 2. Victorino Corp issued 200,000 ordinary shares when it began operations in Jan 25, 2015 and issued an additional 100,000 shares during 2015. Victorino also issued preference shares convertible into 100,000 shares of ordinary shares. In 2016, Victorino purchased 75,000 of its ordinary shares and held it in the treasury. At Dec 31,2016, how many shares of Victorino's ordinary shares were outstanding?

a. 400,000 b. 325,000 c. 300,000 d. 225,000

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3. During 2015, Bradley Corp. issued 5000 shares of $100 par convertible preference shares for $110 per share. One share of preference shares can be converted into three shares of Bradley's $25 par ordinary shares at the option of the preference shareholder. On Dec 31,2016, when the market value of the ordinary shares was $40 per share, all of the preference shares were converted. What amount should Bradley credit to Ordinary shares and Share Premium- Ordinary accounts as a result of the conversion?

a. Ordinary Shares 375,000 Share Premium-Ordinary 175,000

b. Ordinary Shares 375,000 Share Premium-Ordinary 225,000

c. Ordinary Shares 500,000 Share Premium-Ordinary 50,000

d. Ordinary Shares 600,000

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4. You are given the following information: Ordinary Shares $80,000 (80 par); Share Premium-Ordinary, $200,000; and Retained Earnings, $400,000. Assuming only one class of share, the book value per share is

a. $280 b. $680 c. $80 d. $400

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5. Allison Corp's shareholder's equity accounts at Dec.31,2016 were as follows.

Ordinary Shares, $20 par	$ 8,000,000
Share Premium	$ 2,550,000
Retained Earnings	$ 1, 275,000

All Ordinary shares outstanding at Dec 31, 2016 were issued in 2015 for $26 a share. On Jan. 4,2017, Allison reacquired 20,000 of its ordinary shares at $24 a share and retired them. Immediately after the shares were retired, the balance in share premium was

a. $2,470,000 b. $2,430,000 c. $2,510,000 d. $2,590,000

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6. On Feb 1,2016, Parker corp issued 5,000 shares of $100 par convertible preference shares for $110 per share. One share of preference shares can be converted into 2 shares of Parker's Corp's $10 par value ordinary shares at the option of the preference shareholder. On Dec. 31,2017, when the market value was $40 per share, all of the preference shares was converted.

What amount should be credited to share premium-preference on Feb.1,2016?

a. $500,000 b. $125,000 c. $50,000 d. -0-

How much should be credited to share premium-ordinary as a result of the conversion on Dec.31,2017?

a. -0- b. $100,000 c. $350,000 d. $450,000