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Questions and Answers
What does the term 'highest bidder' refer to in the context of delinquent shares?
What does the term 'highest bidder' refer to in the context of delinquent shares?
- The bidder willing to pay the most for the shares
- The bidder willing to receive the smallest number of shares (correct)
- The bidder willing to cover all the expenses incurred in the public auction
- The bidder willing to subscribe to additional shares at a premium
What is typically included in the offer price for delinquent shares in a public auction?
What is typically included in the offer price for delinquent shares in a public auction?
- Current market value of the shares
- Cost of advertising the auction
- Accrued interest on delinquent shares
- Unpaid balance due on subscription (correct)
Based on the information provided, what was the total cost incurred for auctioning Mr. Ronald's delinquent shares?
Based on the information provided, what was the total cost incurred for auctioning Mr. Ronald's delinquent shares?
- P280,000
- P300,000
- P50,000
- P20,000 (correct)
How many shares did Twirlie express willingness to receive in the auction?
How many shares did Twirlie express willingness to receive in the auction?
Which bidder is NOT mentioned as willing to pay the offer price for the delinquent shares?
Which bidder is NOT mentioned as willing to pay the offer price for the delinquent shares?
What is required for an individual to be considered the highest bidder in a public auction for delinquent shares?
What is required for an individual to be considered the highest bidder in a public auction for delinquent shares?
What is the total number of shares subscribed to in this case?
What is the total number of shares subscribed to in this case?
What are the journal entries made to record the expenses on the public auction?
What are the journal entries made to record the expenses on the public auction?
Who is left with the remaining shares for the delinquent subscriber?
Who is left with the remaining shares for the delinquent subscriber?
How many shares did Champ bid for in this scenario?
How many shares did Champ bid for in this scenario?
In which account should the 'advances on share delinquency sale' be treated before payment from the highest bidder?
In which account should the 'advances on share delinquency sale' be treated before payment from the highest bidder?
What is the amount fully paid by 80% of the original subscribers for the share subscriptions?
What is the amount fully paid by 80% of the original subscribers for the share subscriptions?
Why is the down payment multiplied by 80% in the computation?
Why is the down payment multiplied by 80% in the computation?
What account is credited with the excess amount over par value when shares are issued at P120 per share?
What account is credited with the excess amount over par value when shares are issued at P120 per share?
What happens if a share subscriber fails to pay their unpaid share subscription by the due date set by the board of directors?
What happens if a share subscriber fails to pay their unpaid share subscription by the due date set by the board of directors?
What action may be taken with delinquent shares?
What action may be taken with delinquent shares?
Why do bidders participate in the public auction of delinquent shares?
Why do bidders participate in the public auction of delinquent shares?
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