. The following accounts are shown on the statement of financial position of Phoenix Corporation Share Capital, P 100 par, 1,000 shares Share Premium P 100,000 2,000 Paid in Capital from Treasury Shares Retained Earnings Treasury shares, 200 shares at cost 2,000 75,000 25,000 All the 200 treasury shares were sold for P 22,000. How would the resale of the treasury shares be recorded?

. The following accounts are shown on the statement of financial position of Phoenix Corporation Share Capital, P 100 par, 1,000 shares Share Premium P 100,000 2,000 Paid in Capital from Treasury Shares Retained Earnings Treasury shares, 200 shares at cost 2,000 75,000 25,000 All the 200 treasury shares were sold for P 22,000. How would the resale of the treasury shares be recorded?

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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Question

12. All the 200 treasury shares were sold for P 22,000. How would the resale of the treasury shares be recorded?
13. As a result, the effect on the total Additional Paid In Capital would be ____________________ (indicate increase or decrease)

12. The following accounts are shown on the statement of financial position of Phoenix Corporation
Share Capital, P 100 par, 1,000 shares
P 100,000
Share Premium
2,000
Paid in Capital from Treasury Shares
Retained Earnings
Treasury shares, 200 shares at cost
2,000
75,000
25,000
All the 200 treasury shares were sold for P 22,000. How would the resale of the treasury shares
be recorded?
The shareholders' equity of Oklahoma Thunder Inc., contain the following: Ordinary Share
Capital, P 30 par, 25,000 shares; Ordinary Share Premium, P 87,500 and Retained Earnings of
P 150,000. At the end of the year, the original issue of Ordinary Share of P 30 par was replaced by
P 30 stated value.
As a result, the effect on the total Additional Paid In Capital would be
(indicate increase or decrease)
13.

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