The following data were presented for WENG company on Jan. 1, 2018: Ordinary share, par value 20, authorized 400,000 shares issued and outstanding, 240,000 shares Share premium Retained Earnings 4,800,000 960,000 3,080,000 The company uses the cost method of accounting for treasury shares and the following transactions took place: The entity acquired 4,000 shares of its shares for 140,000; sold 2,400 treasury shares at 40 per share, then retired the remaining treasury shares. What is the amount of the retained earnings after the retirement of treasury shares?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
The following data were presented for WENG company on Jan. 1, 2018:
Ordinary share, par value 20, authorized 400,000 shares
issued and outstanding, 240,000 shares
4,800,000
Share premium
Retained Earnings
960,000
3,080,000
The company uses the cost method of accounting for treasury shares and the following
transactions took place: The entity acquired 4,000 shares of its shares for 140,000; sold
2,400 treasury shares at 40 per share, then retired the remaining treasury shares.
What is the amount of the retained earnings after the retirement of treasury shares?
Transcribed Image Text:The following data were presented for WENG company on Jan. 1, 2018: Ordinary share, par value 20, authorized 400,000 shares issued and outstanding, 240,000 shares 4,800,000 Share premium Retained Earnings 960,000 3,080,000 The company uses the cost method of accounting for treasury shares and the following transactions took place: The entity acquired 4,000 shares of its shares for 140,000; sold 2,400 treasury shares at 40 per share, then retired the remaining treasury shares. What is the amount of the retained earnings after the retirement of treasury shares?
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Investments and Financial instruments
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education