Answer only The following information pertains toBlack Pink Corporation: Ordinaryshare capital, 50,000 shares, P100parP5,000,000Share premium -original issuance500,000Sharepremium – treasuryshares100,000ORetainedearnings1,000,0O0Treasury shares,5,000 shares at cost750,00Olf the5,000 ordinary shares held astreasury are subsequently retired,what amount should be debited toretained earnings account to recordthis transaction?Your answer

Solution: Cost per share of treasury stock = P750,000 / 50000 = P150 per share Original issue price…

The following information pertains to Black Pink Corporation: Ordinary share capital, 50,000 shares, P100 parP5,000,000Share premium - original issuance500,000Share premium - treasury shares100,00ORetained earnings1,000,000Treasury shares, 5,000 shares at cost750,000lf the 5,000 ordinary shares held as treasury are subsequently retired, what amount should be debited to retained earnings account to record this transaction?

The following information pertains to Black Pink Corporation: Ordinary share capital, 50,000 shares, P100 parP5,000,000Share premium - original issuance500,000Share premium - treasury shares100,00ORetained earnings1,000,000Treasury shares, 5,000 shares at cost750,000lf the 5,000 ordinary shares held as treasury are subsequently retired, what amount should be debited to retained earnings account to record this transaction?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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