1. ABC Company has the following balances in its’ equity account as of January 1, 2021: Ordinary shares, P 5 par P 500,000 Share premium – ordinary 2,000,000 Retained earnings 7,000,000 On March 28, the corporation purchased 10,000 shares as treasury stock at P15 per share. On April 10, it sold 4,000 of the treasury shares at P14 per share. On July 5, it sold 2,000 shares at P16 per share. Required: a. Determine the number of shares issued and outstanding on: Jan 1 Mar 31 June 30 Sep 30 b. Prepare the journal entries for the above transactions
1. ABC Company has the following balances in its’ equity account as of January 1, 2021: Ordinary shares, P 5 par P 500,000 Share premium – ordinary 2,000,000 Retained earnings 7,000,000 On March 28, the corporation purchased 10,000 shares as treasury stock at P15 per share. On April 10, it sold 4,000 of the treasury shares at P14 per share. On July 5, it sold 2,000 shares at P16 per share. Required: a. Determine the number of shares issued and outstanding on: Jan 1 Mar 31 June 30 Sep 30 b. Prepare the journal entries for the above transactions
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. ABC Company has the following balances in its’ equity account as of January 1, 2021:
Ordinary shares, P 5 par P 500,000
Share premium – ordinary 2,000,000
Retained earnings 7,000,000
On March 28, the corporation purchased 10,000 shares as treasury stock at P15 per share. On April 10, it sold 4,000 of the treasury shares at P14 per share. On July 5, it sold 2,000 shares at P16 per share.
Required:
a. Determine the number of shares issued and outstanding on:
Jan 1
Mar 31
June 30
Sep 30
b. Prepare the journal entries for the above transactions
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education