Louisiana State University, Shreveport ACCT 701 IFRS QUESTIONS 1)Jahnke Corporation issued 8,000 shares of €2 par value ordinary shares for €11 per share

Louisiana State University, Shreveport

ACCT 701

IFRS QUESTIONS

1)Jahnke Corporation issued 8,000 shares of €2 par value ordinary shares for €11 per share. The journal entry to record the sale will include

1. 1. 1. 1. a debit to Cash for €16,000.
         2. a credit to Share Premium–Ordinary for €72,000.
         3. a credit to Share Capital–Ordinary for €88,000.
         4. a debit to Retained Earnings for €72,000.
      2. La Vida Corporation issued 24,000 shares of no-par value ordinary shares for €29.50 per share. Which of the following statements is true?
         1. Share Premium–Ordinary account will increase by €276,000.
         2. The Cash account will increase by €24,000.
         3. Retained Earnings account will increase by €684,000.
         4. Share Capital–Ordinary account will increase by €708,000.
      3. Freidrichs Company has issued and outstanding 11,000 shares of cumulative, 6%, €50 par value preference shares which it sold for €54 per share at the beginning of 2015. The company has never paid preference dividends. As of December 31, 2017, dividends in arrears are

a. €66,000.

b. €99,000.

c.   €121,500.

d. €106,920.

1. 1. 4. Looper, Inc. has 30,000 shares of 6%, ?100 par value, noncumulative preference shares and 50,000 ordinary shares with a ?1 par value outstanding at December 31, 2017. There were no dividends declared in 2016. The board of directors declares and pays a

?250,000 dividend in 2017. What is the amount of dividends received by the common shareholders in 2017?

1. 1. 1. 1. ?0

b. ?180,000

c.   ?250,000

d. ?70,000

1. 1. 5. Manner, Inc. has 10,000 shares of 5%, ?100 par value, noncumulative preference shares and 20,000 ordinary shares with a ?1 par value outstanding at December 31, 2017. There were no dividends declared in 2016. The board of directors declares and pays a ?90,000 dividend in 2017. What is the amount of dividends received by the ordinary shareholders in 2017?
         1. ?0

b. ?50,000

c.   ?90,000

d. ?40,000

1. 1. 6. Anders, Inc has 10,000 shares of 5%, €100 par value, cumulative preference shares and 20,000 ordinary shares with a $1 par value outstanding at December 31, 2017. There were no dividends declared in 2015. The board of directors declares and pays a €90,000 dividend in 2016 and in 2017. What is the amount of dividends received by the ordinary shareholders in 2017?

a. €30,000

b. €50,000

c.   €90,000

d. €0

1. 1. 7. On January 1, Swanson Corporation had 80,000 ordinary shares with a €10 par value outstanding. On March 17, the company declared a 15% share dividend to shareholders of record on March 20. Market value of the shares was €13 on March 17. The entry to record the transaction of March 17 would include a
         1. credit to Cash Dividends for €36,000.
         2. credit to Cash for €156,000.
         3. credit to Ordinary Share Dividends Distributable for €120,000.
         4. debit to Ordinary Share Dividends Distributable for €120,000.
      8. On January 1, Swanson Corporation had 80,000 ordinary shares with a €10 par value outstanding. On March 17, the company declared a 15% share dividend to shareholders of record on March 20. Market value of the shares was €13 on March 17. The shares were distributed on March 30. The entry to record the transaction of March 30 would include a
         1. credit to Cash for €120,000.
         2. debit to Ordinary Share Dividends Distributable for €120,000.
         3. credit to Share Premium–Ordinary for €36,000.
         4. debit to Cash Dividends for €36,000.