TRUE or FALSE

ALL questions

33. The highest bidder in a delinquency sale is the person willing to pay the "offer price that includes the full amount of the subscription balance plus accrued interest, cost of advertisement and expenses of auction sale in exchange for the smallest number of shares 34. Treasury stocks refer to shares reacquired by the issuing corporation. 35. The purchase of treasury stocks reduces both total assets and total shareholders' equity. 36. The entry to record the purchase of treasury stock will cause total shareholders equity to decrease by the amount of the cost of the treasury shares. 37. When 10,000 shares of P20 par value ordinary shares are issued in payment for a parcel of land with a fair market value of P300,000, the Ordinary Shares account is credited for P200,000, and the Share Premium-Ordinary account is credited for P100,000 38. if share capital is issued for an outstanding liability, the fair market value of the share capital issued should be the measure for recording. 39. The balance in the Share Premium account must be added to the balance of the Ordinary Shares account to compute the amount of legal capital for a corporation with a par value ordinary share. 40. Treasury stocks shall have no voting right as long as they remain in the treasury. 41. Organization cost is an asset and is usually amortized over five years. 42. The reissuance of treasury stocks for less than their par or issued value is prohibited by law. 43. Contributed capital has two major components-legal capital and share premium. In case of par value shares, legal capital is the aggregate par value of all issued and subscribed shares. 44. If share capital is issued for a non-cash consideration, the proceeds is recorded at an amount equal to the following in the order of priority: fair market value of share capital issued, fair market value of the non-cash consideration received and par or stated value of the share capital issued. 45. Treasury stock may be either ordinary or preference share. 46. The sale of treasury stock at an amount greater than cost results in a gain to be reported on the statement of recognized income and expense. 6-28 | WIN Ballado's Partnership and Corporation Accounting