ABC Company has 100,000 authorized number of common stock, which 80,000 shares were issued and outstanding. The company issues 20,000 additional shares to other people, Mr. Abad’s ownership in the company is 5,000 shares. How much share should he be allowed to buy under the pre-emptive right to maintain his ownership interest in the company? a.1,000 b. 1,250 c. 5,000 d. 4,000
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- 14. On March 4, 20x3, Evan Co. purchased 1,000 shares of LVC common stock (ordinary shares) at P80 per share. On September 26, 20x3, Evan received 1,000 stock rights to purchase an additional 1,000 shares at P90 per share. The stock rights had an expiration date of February 1, 20x4. On September 30, 20x3, LVC's common stock had a market value, ex-rights, of P95 per share and the stock rights had a market value of P5 each. What amount should Evan report on its September 30, 20x3 balance sheet as the cost of its investment in stock rights? a. 4,000 b. 5,000 c. 10,000 d. 0 (AICPA)ABC Company has 100,000 authorized number of common stock, which 80,000 shares were issued and outstanding. The company issues 20,000 additional shares to other people, Mr. Abad’s ownership in the company is 5,000 shares. Should Mr.Santos exercised the pre-emptive right, how much is the increased in his ownership interest in the company? a. 25% b. 0 c. 1.25% d. 20%ABC Company has 100,000 authorized number of common stock, which 80,000 shares were issued and outstanding. The company issues 20,000 additional shares to other people, Mr. Go’s ownership in the company is 5,000 shares. Should Mr. Go did not exercised the pre-emptive right, how much is the dilution in his ownership interest in the company?a. 25% b. 0 c. 1.25% d. 20%
- A corporation issued shares with par value of P 200.00, subsequently, the corporation purchased the share at par value. If the shares are sold by the corporation for P 150.00 per share, N subscribed for 100 shares of the corporation and paid the 70 shares. 2.1 May he be issued stock certificates for the 70 shares? Explain your answer.2. On 12/31, Choco acquired Cake by issuing 40,000 shares of its common stock when the market value (=fair value) is $32/share. Cake will remain incorporated. Choco has common stock with $15 par, 50,000 shares outstanding and Cake has $5 par, 60,000 shares outstanding Choco Book Values Cake Book Values Cake Fair Values Cash and Receivable 350,000 180,000 170,000 Inventories 250,000 100,000 150,000 Land 700,000 120,000 240,000 Building and equipment 600,000 600,000 900,000 Patented technology 100,000 0 60,000 Accounts payable 300,000 120,000 150,000 Long-term debt 0 400,000 350,000 Common stock 750,000 300,000 Additional paid in capital 500,000 60,000 Retained earnings 12/31 450,000 120,000 Revenues 350,000 160,000 Expenses 310,000 130,000 Q4. Choco also paid $12,000 in cash for stock issuance cost. What is the journal entry? Q5. Prepare consolidation Entry S. Q6. Prepare consolidation Entry A2. On 12/31, Choco acquired Cake by issuing 40,000 shares of its common stock when the market value (=fair value) is $32/share. Cake will remain incorporated. Choco has common stock with $15 par, 50,000 shares outstanding and Cake has $5 par, 60,000 shares outstanding Choco Book Values Cake Book Values Cake Fair Values Cash and Receivable 350,000 180,000 170,000 Inventories 250,000 100,000 150,000 Land 700,000 120,000 240,000 Building and equipment 600,000 600,000 900,000 Patented technology 100,000 0 60,000 Accounts payable 300,000 120,000 150,000 Long-term debt 0 400,000 350,000 Common stock 750,000 300,000 Additional paid in capital 500,000 60,000 Retained earnings 12/31 450,000 120,000 Revenues 350,000…
- 2. On 12/31, Choco acquired Cake by issuing 40,000 shares of its common stock when the market value (=fair value) is $32/share. Cake will remain incorporated. Choco has common stock with $15 par, 50,000 shares outstanding and Cake has $5 par, 60,000 shares outstanding Choco Book Values Cake Book Values Cake Fair Values Cash and Receivable 350,000 180,000 170,000 Inventories 250,000 100,000 150,000 Land 700,000 120,000 240,000 Building and equipment 600,000 600,000 900,000 Patented technology 100,000 0 60,000 Accounts payable 300,000 120,000 150,000 Long-term debt 0 400,000 350,000 Common stock 750,000 300,000 Additional paid in capital 500,000 60,000 Retained earnings 12/31 450,000 120,000 Revenues 350,000 160,000 Expenses 310,000 130,000 Q7. Prepare a worksheet to consolidate…2. On 12/31, Choco acquired Cake by issuing 40,000 shares of its common stock when the market value (=fair value) is $32/share. Cake will remain incorporated. Choco has common stock with $15 par, 50,000 shares outstanding and Cake has $5 par, 60,000 shares outstanding Choco Book Values Cake Book Values Cake Fair Values Cash and Receivable 350,000 180,000 170,000 Inventories 250,000 100,000 150,000 Land 700,000 120,000 240,000 Building and equipment 600,000 600,000 900,000 Patented technology 100,000 0 60,000 Accounts payable 300,000 120,000 150,000 Long-term debt 0 400,000 350,000 Common stock 750,000 300,000 Additional paid in capital 500,000 60,000 Retained earnings 12/31 450,000 120,000 Revenues 350,000…Xyna Company has 400,000 shares of common stock outstanding and is considering issuing another 100,000 shares through stock rights. Each current stockholder will obtain one right per share. Mr. A owns 40,000 shares of common stock. 1. What will Mr. A’s percentage interest in the company be after exercising all his rights? 2. Did his percentage ownership change after exercising his rights relative to what it was before the rights offering?
- Indicate whether the following statements are true or false. If the statementis false, explain why.b. If you own 100 shares in a company’s stock and the company’s stocksplits 2-for-1, then you will own 200 shares in the company followingthe split.AI Sharqiyah Company has RO 1 par value ordinary shares that are currently at RO 20 per share. The company issued 4,000 shares to purchase land recently advertised at RO 82.000. When recording this transaction, the Company will Select one: O a debit Land for RO 80,000. O b. redit Share Capital-Ordinary for RO 82,000. O c debit Land for RO 82,000. O d. None of the answers are correct. O e credit Share Premium-Ordinary for RO 2,000.0 Required information [The following information applies to the questions displayed below.] a. On March 22, purchased 700 shares of RPI Company stock at $22 per share. Duke's stock investment results in it having an insignificant influence over RPI. b. On July 1, received a $2 per share cash dividend on the RPI stock purchased in part a. c. On October 8, sold 350 shares of RPI stock for $32 per share. Analyze each transaction above by showing its effects on the accounting equation-specifically, identify the accounts and amounts (including+ or -) for each transaction. k Assets Liabilities + a. 8 CO M I K ( 9 ; I option { [ ? I Equity + 11 "1 C } ] Save & Ext Check delete