1. On December 10, Daniel Co.
o. split its stock 5-for-2 when the market value was P65 per share. Prior to the split,
Daniel had 200,000 shares of P15 par value stock. After the split, the par value of the stock was
ANS: P6
P15/5x2
2. On December 10, Daniel Co. split its stock 5-for-2 when the market value was P65 per share. Prior to the split,
Daniel had 200,000 shares of P15 par value stock. After the split, Daniel's outstanding shares would be
ANS 500,000
200,000/2 x 5
3. Zen Company issued 100,000 ordinary shares. Of these 5,000 shares were held as treasury on January 1,
2022. During the year, the following transactions occurred:
May 1 1,000 shares of treasury were sold
Aug 1 10,000 unissued shares were sold.
Nov 15 A 2 for 1 share split took effect.
On December 31, 2022, how many shares were issued and outstanding?
Issued Outstanding
220,000 212,000
4. Franta Company was authorized to issue share capital of 100,000 shares with P50 par value in January 1,
2022. Eighty thousand shares were sold during the first year at P50 per share and 4,000 shares were later
reacquired as treasury at P65 per share. A share split of 5 for 1 was approved on December 31, 2022. On
January 31, 2023, a 10% stock dividend was paid and on March 1, 2023, the treasury shares were reissued at
P68 per share. What is the number of shares issued and outstanding on March 1, 2023?
Shares issued as split (80,000 x 5) 400,000
Less: Treasury shares (4,000 x 5) ( 20,000)
Outstanding 380,000
10% stock dividend 38,000
Reissuance of treasury 20,000
Total issued and outstanding 438,000
5. Delta Company had 80,000 ordinary shares outstanding in January 2022. The entity distributed a 15% stock
dividend in March and a 10% stock dividend in June. After reacquiring 10,000 shares of treasury in July, the
entity split the share 4 for 1 in December. How many ordinary shares are outstanding in December 31, 2022?
A. 364,800
Original shares 80,000
Stock dividend in March (15% x 80,000) 12,000
Total 92,000
Stock dividend in June (10% x 92,000) 9,200
Total issued shares before split 101,200
Total issued shares after split (101,200 x 4) 404,800
Treasury shares after split (10,000 x 4) ( 40,000)
Outstanding shares 364,800
6. Echo Company had 700,000 ordinary shares authorized and 300,000 shares outstanding on January 1, 2022.
January 31 Declared 10% stock dividend
June 30 Purchased 100,000 shares
August 1 Reissued 50,000 shares
November 30 Declared 2-for-1 share split
On December 31, 2022, how many ordinary shares are outstanding?
Original shares 300,000
Stock dividend (10% x 300,000) 30,000
Total 330,000
Remaining treasury shares (50,000)
Outstanding shares before split 280,000
Shares issued after split (300,000 x 2) 660,000
Treasury shares after split (50,000 x 2) (100,000)
Outstanding shares after split 560,000
