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ACC 3003-Revision For Test 1
ACC 3003-Revision For Test 1
ACC 3003-Revision For Test 1
202110
a) Contributed capital
b) Retained earnings
c) Capital in excess of par- Repurchase
d) Treasury shares
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ACC 3003 Revision for Test 1
202110
a) $112 million
b) $124 million
c) $100 million
d) $120 million
Given below is the information taken from the balance sheet of Zeal Inc.
Authorized common stock at par $5, 20 million; Shares issued $45 million; Treasury common
stock 3million shares.
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ACC 3003 Revision for Test 1
202110
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ACC 3003 Revision for Test 1
202110
Nella Corporation is authorized to issue 8 million common shares, $1 par value per share and 2
million preferred shares, $50 par per share.
The following transactions took place during 2020:
April 3, 2020 Sold 3 million common shares, for $8 per share. The cost relating to this
transaction was $20,000.
April 10, 2020 Issued 4,000 preferred shares for a total of $260,000.
April 16, 2020 Issued 2,000 preferred shares to attorneys in exchange for legal services
valued at $ 120,000
April 24, 2020 Sold 90,000 of its common shares and 5,000 preferred shares for a total
of $975,000.
August 9,2020 Issued 380,000 of its common shares in exchange for equipment for
which the cash price was known to be $3,688,000.
Dr Cr
The shareholders' equity of Sun Light Inc. includes the items shown below. The board of
directors declared cash dividends of $4 million, $5 million, and $15 million in each of its first 3
years of operation:
2017, 2018, and 2019, respectively.
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ACC 3003 Revision for Test 1
202110
Required:
Determine the amount of dividends given to preferred and common shareholders during each
of the three years. The preferred stock is cumulative and nonparticipating.
2017
2018
2019
Amman Corporation's equity section has the following amounts at the end of 2018:
Common Shares, 200,000 issued and outstanding, $ 2,000,000
Paid in Capital excess par (Common Stock) $ 3,000,000
Retained Earnings $ 700,000
Required:
Prepare the journal entries to record the above transactions, using the cost method.
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ACC 3003 Revision for Test 1
202110
Dr Cr
Prepare the shareholders’ equity section of Shana Inc. balance sheet at December 31, 2020
from the following information
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ACC 3003 Revision for Test 1
202110
Common Stock:
Preferred Stock
Issued shares 10mn
Issue price $7
Par value $5
Treasury stock (at cost) 32
Retained Earnings $15mn
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