nary shares with a par value of P10 per share. During the current year, the entity had the following share capital transactions: February 14 – Issued 500,000 shares at P20 per share March 10 – Reacquired 50,000 treasury shares at P15 per share August 25 – Reissued 30,000 treasury shares at P18 per share The entity used the cost method to record the reacquisition and reissuance of the treasury shares. What total amount should be reported as share premium at year-end? a. P5,240,000
nary shares with a par value of P10 per share. During the current year, the entity had the following share capital transactions: February 14 – Issued 500,000 shares at P20 per share March 10 – Reacquired 50,000 treasury shares at P15 per share August 25 – Reissued 30,000 treasury shares at P18 per share The entity used the cost method to record the reacquisition and reissuance of the treasury shares. What total amount should be reported as share premium at year-end? a. P5,240,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the beginning of the current year, Salonga Company was organized with an authorization of 1,000,000 ordinary shares with a par value of P10 per share. During the current year, the entity had the following share capital transactions:
February 14 – Issued 500,000 shares at P20 per share
March 10 – Reacquired 50,000 treasury shares at P15 per share
August 25 – Reissued 30,000 treasury shares at P18 per share
The entity used the cost method to record the reacquisition and reissuance of the treasury shares.
What total amount should be reported as share premium at year-end?
a. P5,240,000
b. P5,090,000
c. P5,000,000
d. P5,400,000
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