Exam 13: Share Capital and Reserves

The appropriate account to record any excess proceeds received and retained (not refunded) by a company from an oversubscription to a share offer application, is the:

Dividends declared after the balance date but before the financial statements are authorised for issue:

Valdez Limited issued 10 000 share options to subscribe for ordinary shares. The exercise price on the options was $3 per share. If all options were exercised on due date the following journal entry would be recorded:

The balance in the retained earnings account is affected by the transfer to that account of: I Issued share capital II Dividends paid or provided for III Transfers to or from other reserve accounts IV Changes in accounting policies and errors

Gains or losses that arise as a result of translating foreign currency denominated operations into the reporting currency are recognised in income:

In respect to the issue of shares by a company, what is an IPO?

In relation to an asset revaluation surplus, an entity:

Which of the following statements is incorrect?

A company's capital consists of 50 000 ordinary shares issued at $2 and paid to $1 per share. On 1 September, a first call of 50c was made on the ordinary shares. By 30 September, the call money received amounted to $22 500. No further payments were received, and on 31 October, the shares on which calls were outstanding were forfeited. On 15 November, the forfeited shares were reissued as paid to $1.50 for a payment of $1 per share. The appropriate cash amount from the reissue was received on 19 November. Costs of reissue amounted to $2 000. The company's constitution provided for any surplus on resale, after satisfaction of unpaid calls, accrued interest and costs, to be returned to the shareholders whose shares were forfeited. The amount of the surplus payable to the shareholders whose shares were forfeited is: