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NEW QUESTION: 1
At December 31, Year 1, an entity has the following account balances:
The preference shares are cumulative and nonparticipating and have a call price of US $55 per share. The journal entry to record the redemption of all preferences shares on January
2. Year 2, pursuant to the call provision is
A. Option D
B. Option A
C. Option B
D. Option C
Answer: A
Explanation:
The exercise of the call provision resulted in the redemption of the 10.000 preference shares issued and outstanding at the call price of US 8550.00010.000 shares $55 call price per share). To eliminate the carrying amount of the preference shares and recognize the cash paid in this transaction, the required journal entry is to debit preference shares for US $500.000. debit share premium: preference for US $20.000, and credit cash for US $550.000. The difference of US $30.000$550.000 cash - $520,000 carrying amount of the preference shares) is charged to equity debit retained earnings). No loss is reported because the recognition of a gain or loss on transactions involving an entity's own shares is prohibited.
NEW QUESTION: 2
A. Option D
B. Option A
C. Option B
D. Option C
Answer: A
NEW QUESTION: 3
Wenn für die Lagerbedingung bereits Prüflose für zukünftige Testtermine angelegt wurden, die innerhalb dieses inaktiven Zeitraums liegen, müssen Sie diese Prüflose manuell stornieren.
A. Richtig
B. Falsch
Answer: B
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PL-200 Exam Info
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PL-200 Exam Topics
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