1)Which of the following is not a major characteristic of a plant asset? Select one: a. Acquired for use. b. The useful

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1)Which of the following is not a major characteristic of a plant asset? Select one: a. Acquired for use. b. The useful life is greater than one year. c. Acquired for resale. d. Possesses physical substance. Clear my choice The bonds should be classified as long-term debts. Select one: a. True. b. False. 2)Palau Corporation had the follow amounts in its stockholders' equity section of its balance sheet at December 31, 2017 Ordinary share capital, P30 par, 85,000 shares authorized, 30,000 issued and outstanding P 900,000 Ordinary share premium 350,000 Accumulated profits 300,000 Total stockholder's equity ? 1,550,000 During 2018, the following transactions relating to equity occurred March 1 Issued 8,000 ordinary shares at P35 April 1 3,000 ordinary shares were reacquired at P28 June 1 3,000 ordinary shares were reacquired at P 33 September 1 1,800 treasury shares were sold at P 30 October 1 1,000 treasury shares were sold at P 26 Assume the treasury stocks were accounted using the

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1) Solution: 1 Plant Assets: Plant Assets is Fixed assets of the company which is acquired for more than one year and for used in production of articles or things and Plant’s physical present should be must Every plant is acquired for production of articles and things it mean option c “Acquired for resale” is incorrect. Plants are resold only at the time of expire of life of plant or Technology become outdated. As per the above option A , B and D is correct but option C is not correct Answer = Option C = Solution: 2 The bonds are always classified as long term debts because no one bonds are issued for one year or shorter period. So it means the given statement is correct. Answer : Option A = True 2) 1] The transactions and their effects are shown in the table below: Date Transactions Ordinary Share Capital Ordinary Share Premium Accumulated Profits Treasury Shares Share Premium -Treasury Shares Total Beginning balance 900000 350000 300000 0 1550000 1-Mar Issue of 8000 ordinary shares 240000 40000 0 0 280000 1-Apr Purchase of treasury shares [3000*28] 0 0 0 84000 -84000 1-Jun Purchase of treasury shares [3000*33] 99000 -99000 1-Sep Sale of treasury shares [1800*30] -50400 3600 54000 [1800*28] [1800*2] 1-Oct Sale of treasury shares [1000*26] -28000 -2000 26000 [1000*28] [1000*2] Total 1140000 390000 300000 104600 1600 1727000 2] ANSWERS: Ordinary share capital 1140000 Share premium-Ordinary shares 390000 Share premium-Treasury shares 1600 Accumulated profits 300000 Treasury

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1)Which of the following is not a major characteristic of a plant asset? Select one: a

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1]	The transactions and their effects are shown in the table below:
Date	Transactions	Ordinary Share Capital	Ordinary Share Premium	Accumulated Profits	Treasury Shares	Share Premium -Treasury Shares	Total
	Beginning balance	900000	350000	300000	0		1550000
1-Mar	Issue of 8000 ordinary shares	240000	40000	0	0		280000
1-Apr	Purchase of treasury shares [3000*28]	0	0	0	84000		-84000
1-Jun	Purchase of treasury shares [3000*33]				99000		-99000
1-Sep	Sale of treasury shares [1800*30]				-50400	3600	54000
					[1800*28]	[1800*2]
1-Oct	Sale of treasury shares [1000*26]				-28000	-2000	26000
					[1000*28]	[1000*2]
	Total	1140000	390000	300000	104600	1600	1727000
2]	ANSWERS:
	Ordinary share capital	1140000
	Share premium-Ordinary shares	390000
	Share premium-Treasury shares	1600
	Accumulated profits	300000
	Treasury stock	-104600
	Total shareholders' equity	1727000