30) If no-par stock is issued without a stated value, then A) the par value is automatically $1 per share. B) there is no legal capital. C) the entire proceeds are considered to be legal capital. D) the corporation is automatically in violation of its state charter.
Q: A company issued 1,000,000 shares of common stock. Of these 150,000 shares were held as treasury…
A: No. of shares issued means shares issued by the company including the shares purchased by the…
Q: Kuko company has an overdue 10% note payable to Filipino Bank amounting to P8,000,000 with accrued…
A: In this question, we need to calculate the gain on debt restructuring for which we need a) Current…
Q: The Adams Company, a merchandising firm, has budgeted its activity for November according to the…
A: The cash budget is prepared to record the cash receipts and cash payments during the period.
Q: CFAS Company had the following shareholders' equity on January 1, 2022: Preference share capital,…
A: Note: As per our guidelines, only the first three subparts will be answered. 1. Amount charged to…
Q: sset X has a beta of 1.7 and an expected return of 15.1%. Asset Y has a beta of .70 and an expected…
A: Let the total portfolio should of $ 1. Total portfolio = Investment in Asset X + Investment in…
Q: Lens Junction sells lenses for $44 each and is estimating sales of 15,000 units in January and…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: 28) Stockholders of a corporation directly elect A) the president of the corporation. corporation.…
A: Introduction: A stockholder is a person, business, or other entity who owns any quantity of a firm's…
Q: A and B realized that the partnership is hindering them from starting their respective families. Due…
A: Since, in the given case partners by themselves decided to fissolve the partnership. Thus, its a…
Q: Read the case study below and answer the questions that follow. Hendry Limited produces a…
A: Calculation of product costs under absorption costing: Direct materials 12.00…
Q: B. On January 1, 20X3, GG Co. purchased a new machine for P600,000. The machine had an es- timated…
A: Depreciation Expenses There are different method which are used to calculate the deprecation cost of…
Q: hich of the following is correct regarding the result of a cash disbursement cut-off rendered by an…
A: Cut-off arrangements are the precautions taken by the business entity to keep the business…
Q: True or False: Borrowing and repaying debt principal does not impact net worth. Select one: O True…
A: Introduction: The net worth of a firm is that the total of its assets minus its liabilities as…
Q: What's the cash balance at the end of the month?
A: Budgets are the mainly called the estimates made for future period of time. Cash budget is one of…
Q: On September 1, 2019, Tange company borrowed on a P5,400,000 note payable from a bank. The note…
A: An interest bearing note represents funds loaned by a lender to a borrower, on which interest is…
Q: ENcel ter ons P9-18. As the bookkeeper of Rose Company of Drumheller, you received the bank state-…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Lemuel bought bottles of food supplements at Php 1 800 each. He is planning to sell this at 15%…
A: In this question, we are required to calculate the quantity of bottles to be sold to be in break…
Q: In a liquidating distribution Ann receives cash of $3,000, inventory in which the partnership's…
A: A partnership is a type of business that is conducted by two or more partners who work together in…
Q: Prepare the journal entry(s) for the admission of IU to the partnership assuming IU invested…
A: Admission of a partner into the partnership business can be made by either the acceptance and…
Q: Net unrealized loss on foreign currency transaction 35,000 Net unrealized gain on translation…
A: Restricted earnings are amounts set aside to meet specific purpose but still forms part of…
Q: Identify which category of shareholder's equity is affected by each item and briefly explain how it
A: Shareholders equity is one of the important element of balance sheet of the business. It shows total…
Q: Allocating Joint Costs Using the Weighted Average Method Sunny Lane, Inc., purchases peaches from…
A: The question is related to allocation of Joint cost to product. Joint costs are the expenditures…
Q: On January 1, 2017, the llocos Norte Corporation purchased the business of its competitor in a…
A: Impairment of Assets It is important for the business entity to determine the impairment loss of the…
Q: Initially, a foreign currency transaction shall be recorded by applying The spot exchange rate at…
A: Foreign currency transaction are the transaction which conducted in a currency other than the local…
Q: A company reports the following information for its direct labor. Actual hours of direct labor used…
A: Direct Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked…
Q: True or False: Borrowing and repaying debt principal does not impact net worth. Select one: True…
A: Introduction: The net value of a firm is the total of its assets minus its liabilities as stated on…
Q: In translating a foreign subsidiary's financial statements, which exchange rates does the current…
A: Introduction:- As per U.S. GAAP the current rate method is required for translating (assets and…
Q: A company sold 8,000 units of its signature product for the calendar year ended December 31, 2020.…
A: The ending balance of Provision for warranty will be equal to beginning balance of Provision for…
Q: Independently considering each of the following statements regarding Form W-2 (Wage and Tax…
A: Answer:- W-2 form meaning:- A basic tax form that shows an employee's total salary earned and taxes…
Q: 1. A company received 3,000, P10 par ordinary shares from one of its shareholders. In the same year…
A: Donated capital refers to the assets provided to the entity as the gift, this amount is reported at…
Q: ITH THAT ANSWER
A: This question is related to the topic of basics of proof of cash and here there are multiple-choice…
Q: dger turo
A: Explanation of Concept Ledger Posting : is the step in the process of preparing the books accounts…
Q: Under Application Guidance 36 of IAS 32, an entity’s own equity instruments also known as treasury…
A: IAS 32 is providing guidance on classification of financial instruments as financial liabilities and…
Q: Michalleti Marketing Consulting Ltd issued Gh¢500million of zero-coupon bonds with ex-interest of…
A: The cost of debt is the amount of the cost which is required by the company to pay to the lenders of…
Q: The following information pertains to A Company: • Dividends on its 1,000 shares of 6%, $10 par…
A: An appropriation is a discretionary reclassification of retained earnings. Its purpose is to…
Q: irections: THE EVENTS COMMON TO THE ACCOUNTING FUNCTION OF A BUSINESS ENTITY ARE LISTED BELOW. ON…
A: Introduction:- An accounting cycle is a process of recording, identifying, and analyzing accounting…
Q: Show all the costs that would be classified as costs incurred during the research phase in terms of…
A: IAS - 38, Intangible assets state that the cost incurred for searching for a new or improved product…
Q: The information provided by ABC Manufacturing Corp. disclosed the following: INC
A: As per the provisions of BIR the corporate tax rate for domestic…
Q: what are the top 3 most important sources of revenues, and the top 3 most important sources of…
A: a. sales ( Accounts Receivable) b. interest on temporary investment c. other income ( supplies)
Q: What is the principle under the Corporation Law that allows the court to identify the erring…
A: Corporation means a large company and group of companies authorized to act as a single entity.
Q: Arthoney Ircis trial balance cortairs the fallowing balances: Cash $535 Accounts Payable $344…
A: Introduction: Trial Balance: All the final ledger accounts balances are posted in Trial balance to…
Q: X is indebted to the partnership for P10,000.00 and to the managing partner, Y, for P20,000.00. Y…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : X is…
Q: MDS, Inc. owns 100% of PH Co. On January 5 of the current year, MDS sold machinery to PH at a gain.…
A: MDs owns 100% shares of PH, so gain on sale of machinery should be excluded in the consolidated…
Q: 26) The statement of cash flows will not report the A) uses of cash in the current period. B) amount…
A: The cash flow statement indicates the cash inflow and outflow transactions related to the…
Q: the lease liability be recognized at January 1, 2020, after making the first payment of P260,000 to…
A: Explanation of Concept "A person or a firm who gives asset on lease to another person or a firm…
Q: eceivable accounting to hi relating to accounts receival the year ended 31" Decemb s goods on RO…
A: A bad debt allowance is a valuation account used to estimate the number of receivables that may…
Q: explain each ratio of this list what happened in 2019, 2020, 2021? List Of Ratio 2019 2020 2021…
A: So Let First understand the Meaning of Above Ratio Current Ratio Its Depict the How Much Company's…
Q: Using the tables provided, the present value of $13,265.00 (rounded to the nearest dollar) to be…
A: Introduction:- Present Value Factor is used to calculate a present value of all the future value to…
Q: A corporation purchases 89000 shares of its own $30 par common stock for $47 per share, recording it…
A: Introduction: A share is a percentage of a company's ownership. You own a piece of the issuing firm…
Q: Modern Movables Corporation is a Virginia-based manufacturer of furniture. In a recent quarter, it…
A: Lets understand the basics. Cashflow statement is divided into three parts which are, (1) Cashflow…
Q: Exercise 14A-1 (Algo) Basic Present Value Concepts [LO14-7] Annual cash inflows that will arise from…
A: Present Value: Given a certain rate of return, the present value (PV) of a future amount of money or…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Whereas, a decrease of the authorized capital stock will not be approved by the SEC if the effect is to prejudice the rights of the creditors, and yet no such qualification is provided for under the Corporation Code when it comes to the increase in authorized capital stock, because – It is an application of the coverage of the trust fund that always makes an increase of authorized capital stock favorable or non-prejudicial to the creditors of the corporation. It is presumed that creditors of the corporation will always be happy with the increased of its authorized capital stock. No appraisal right is triggered by an increase in the authorized capital stock of the corporation. Creditors of the corporation, not being within the intra-corporate relationship, have no standing on matters that pertain to the capital structure of the corporation.6. These give the holders the privilege to purchase shares of stocks at a price lower than the prevailing market price of the shares upon the issuance of new shares. 7. The difference of if the issue price is less than the par or stated value of the share. 8. A corporation which has no share capital and where no part of its income is distributable as dividends to its members. 9. A private corporation tasked by the government to provide public service. 10. The SEC issues the certificate of incorporation after this document is filed and duly approved.True or False. a corporation is cease to exist when its shareholders sell their stock.
- 13) The principle of limited liability means: a) creditors cannot seize corporate assets b) that the corporations liability to creditors is limited to the amount of paid up capital c) a shareholder can lose no more than what he has paid for his shares in the event that creditors seize the corporations assets d) none of the aboveWhich of the following reduces a shareholder's S corporation stock basis? O Illegal kickbacks paid. O Depletion deductions in excess of the basis of property. O Nontaxable income. O No response is correct. O A 20% QBI deduction.T2. stock holders are not liable for a corporation's actions or debt true or false
- If a company’s constitution does not contain rules governing the forfeiture of shares, then the company: Select one: A. can register the shares in the name of another shareholder but cannot receive payment from that shareholder. B. may forfeit shares and reissue them at a later date. C. may forfeit shares but not reissue them. D. cannot forfeit shares.When a certificate of stock is issued for shares whose subscription is not fully paid, then – a) the certificates are deemed null and void for being in violation of express prohibition of the Corporation Code. b) the directors and officers who allowed such issuance of the certificate shall be liable to the corporation for the balance of the subscription that remains unpaid. c) the shares are conclusively deemed fully paid as to every due holder in good faith of the certificate of stock. d) the registered stockholder shall no longer be liable for the unpaid portion of the subscription.12. When a company retires its own common shares, the company must a.decrease the common share account balances by the original issue price. b.record a gain or loss depending on the difference between original selling price and repurchase cost. c.get the approval of the government to do so. d.issue a different class of shares to the former shareholders.
- Direction: Write T if the statement is correct and F if the statement is incorrect. On the space provided, explain using the concepts discussed why your answer to a statement is T or F.A corporation cannot be held liable for personal indebtedness of a stockholder even if he is its President. TRUE FALSE By the doctrine of piercing the veil of corporate entity or looking at the substance rather than the form is meant that the law will regard the corporation as a mere association of persons and not of a legal entity separate and distinct from the stockholders. TRUE FALSE No par value shares may not be issued without being fully paid. TRUE FALSE Redeemable shares may be purchased or taken up by the corporation upon the expiration of a fixed period, regardless of the existence of unrestricted retained earnings in the books of the corporation. TRUE FALSE Treasury shares shall have no voting rights as long as they remain in the Treasury TRUE FALSE Treasury shares are entitled to participate in the distribution of dividends. TRUE FALSEThe following are the characteristics of a close corporation, except: a. Any action by the directors of a close corporation without a meeting shall nevertheless be deemed valid. b. Pre-emptive right does not extend to all stock issuances. c. Deadlock in the board is settled by the SEC upon the written petition by any stockholder. d. A stockholder may withdraw and avail of his right of appraisal.