Gwyneth Gloria 86% found this document useful (7 votes) 20K views 8 pages Intermediate Accounting Volume 2 answer key © © All Rights ReservedUploaded by
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Chapter 20 - 23
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Intermediate Accounting Volume 2 answer key
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1. When shares with par value are sold, the proceeds shall be credited to thea.Share capital accountb.Share premiumc.Retained earningsd.Share capital account to the extent of the par of the shares issued with any excess being reflectedin share premium
2. When shares without par value are sold, the excess proceeds over stated value shall be credited to
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3. If shares are issued for noncash consideration, the shares issued shall be measured by4. If shares are issued to extinguish a financial liability, what is the initial measurement of the shares issued?
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5. When shares are issued for services received, the measure is equal to
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a.Fair value of the servicesb.Par value of the shares issuedc.Book value of the shares issuedd.Fair value of the shares issued
6. Treasury shares shall be recorded at cost irrespective of whether these are acquired below or above par value.The cost of treasury shares acquired for noncash consideration is usually measured by7. The total cost of treasury shares shall be reported as
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8. If treasury shares are reissued for noncash considearation, the proceeds shall be measured by
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9. Which of the following statements is incorrect concerning treasury shares?a.Treasury shares shall be recorded at cost irrespective of whether acquired below or above par value.b.The total cost of treasury shares shall be deducted from equity.c.Treasury shares may be recognized as financial assetd.Gain or loss on sale of treasury shares shall not be included in profit or loss.10. “Loss” from sale of treasury shares shall be charged to
11. Gains and losses on retirement of treasury shares shall not be included in profit or loss. If the retirement
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results in a gain, such gain shall be credited to12. Loss on retirement of treasury shares shall be debited to
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