WorksheetsSTOCKHOLDERS EQUITY CORPORATE FORMATION
Total questions: 10
Worksheet time: 5mins
Which is an advantage of a shareholder over a partner
owner cannot directly control business operation
owner can easily transfer his interest
Owner's liability is limited
b and c
Which of the following is a major disadvantage of a corporation?
transferability of interest
availability of capital
limited liability
legal requirements
This account title is credited to represent shareholder's equity for contribution made in cash, property or service
share capital
subscribed share capital
subscription receivable
treasury share
the amount at which the issue price exceeds the par value is credited to
gain on share capital
share premium
discount on share capital
loss on share capital
Share of stock a corporation is allowed to issue
subscribed shares
treasury shares
authorized shares
issue shares
One of these items may not form part of the shareholders equity section
retained earnings
share premium
authorized share capital
subscription receivable
When 100 common shares of 100 par are subscribed for 120. In recording this transaction you should
subscription receivable should be debited for 12,000
subscription receivable should be debited for 10,000
subscribed receivable should be credited for 12,000
credit ordinary share capital 10,000 and ordinary share premium 2,000
Filipinas Inc sold 100 shares of 100 par common stock for 120. in recording this transaction you should
credit ordinary share capital 12,000
credit ordinary share premium 12,000
credit ordinary share capital 2,000 and ordinary share premium 10,000
credit ordinary share capital 10,000 and ordinary share premium 2,000
When 100 common shares of 100 par are subscribed for 120
subscribed share capital for 12,000
subscribed share capital for 10,000 and share premium for 2,000
subscribed share capital for 10,000 and retained earnings for 2,000
share capital for 10,000 and share premium for 2,000
When a par value common stock is exchanged for an asset such as building, the common stock should be credited at the
par value
appraised value of the asset
at its book value
at its original cost price
