Dominguez, CPA

clarence.dominguez@dlsu.edu.ph
Delinquent, Treasury and Donated Shares
1. When the subscriber fails to pay his
subscription balance on the call date,
the corporation sends several notices to
remind him of his obligation. If no
payment was made by the subscriber,
his subscription is declared as
delinquent subscription.
2. Sale of delinquent subscription through
public auction/bidding;
Re-acquire the shares (treasury shares)

3. Receivable from the highest bidder

4. Highest bidder (lowest number of shares)
Unpaid subscription plus advertising,
interest accrued and other expenses
(Receivable from the highest bidder)

5. Re-acquire the shares (treasury shares)

1. True
2. True
3. False highest bidder
4. True
5. False Receivable from the highest bidder
6. True
7. False
8. True
9. False
10. True

1. Sell delinquent shares through
public bidding; Reacquire
shares
2. Advertising
3. Receivable from the highest
bidder
4. Unpaid subscription + Interest
+ Advertising + Other costs
5. Addition to shareholders equity
6. Call


A. Carlo
B. P9,500 (P8,000 + 1,500)
C. 25 shares
D. 75 shares
A. Zero
B. 200 shares
C. P6,200
9-1
1. Are an entitys own shares
initially issued by the
Corporation but later re-
acquired but not cancelled.
2. P.46
3. Acquisition; donation
4. Cost method
5. Deduction from shareholders
equity and outstanding shares
6. Appropriation shall be made

9-2
1. D
2. A
3. C
4. C
5. C

6. C
7. D
8. C
9. A
10. C

References
Financial Accounting by Chalmers
http://www.scribd.com/doc/56606245/Actpaco-Download-
Lecture-Notes

http://www.scribd.com/doc/97628763/ACTPACO-Lecture-
Notes