1.ABC Corporation has beginning total shares of 150,000. 50% of the… 1.???ABC Corporation has beginning total shares of 150,000. 50% of the total shares are preference shares During the year, the company issued 55,000 shares out of that shares previously issued is 25% preference shares. The company decided to have a 2 for 1 split. The preference share has a par value of 250 before the current year. What is the total number of preference shares issued and what is its par value respectively?a.???717,500 and 250??????????????. 711,500 and 500b.???177,500 and 125??????????????. 171,500 and 1252.????ssued and outstanding shares of DEF Corporation are 60,000 ordinary share and 40,000 10% preference shares with 50 and 75 par values respectively. During the year the company incurs an income of 300,000 net of dividends The Company paid dividend on December 31, 2013 for all outstanding ordinary shares only worth 2.50. How much is the income before dividends?a.???300,000?????????????????????c. No definite answerb.????50,000?????????????????????. Answer not given3.???GHI partnership decides to incorporate its partnership. Its total assets are 5,700,000. The company decides to use only ordinary shares as their shares. During the incorporation process, the company decided that the par value per share is 150. How many shares does the company have during the incorporation process?a.???nil amount???????????????????.380,000b.???38,000??????????????????????d. Answer not given?.???Statement 1: donation of shares would result to memo entry under memorandum approach while not in journal approach.???????tatement 2: Donation of real property must be fair value??????Statement 3: Treasury shares are retired using par value???????tatement 4: Upon retirement, retained earnings should be the first to apply before any share premium-treasury shares.?hich of the following is/are correct?a.???Statement 1 and 2????????????????. Statement 1 onlyb.???Statement 2, 3 and 4?????????????d. Statement 2 only?5.???Anything that incurred during the incorporation of a company will sometimes debit to:a.????egal Expense???????????????c. Organizational Expenseb.???Incorporation Expense????????d. Salaries and Wages ExpenseBusinessAccountingACCT 624
