1. Determine the amount of the ordinary share capital at the end of 2021.2. Total share premium account by the end of December 31, 2021 is?3. The amount to be added/deducted to retained earnings as a result of the equity swap is? YELLOW CORPORATION had the following balances from the 2020 transactions:Ordinary share capital, par value Php 10, authorized 300,000 shares, issued and outstanding,120,000 shares1,200,000.00Share premium180,000.00Retained earnings720,000.00The following transactions occurred during the year 2021:1. Acquired 8,000 of its own ordinary shares for Php 144,000. YELLOW CORPORATION utilitizes cost method of accounting fortreasury shares.2. Sold 6,500 treasury shares at Php 20 per share3. Retired the remaining treasury shares.4. YELLOW CORPORATION owes Php 10,000,000 to GREEN BANK. Unpaid interest on this loan has been accrued in the amountof Php 100,000. Because YELLOW CORPORATION is in financial trouble, GREEN BANK agreed to accept from the corporation160,000 shares that have a fair value of Php 8,000,000 in full settlement of the Php 10,000,000 obligation.

Treasury shares are own shares that are purchased for the purpose of re-issuing them at a higher…

1. Determine the amount of the ordinary share capital at the end of 2021. 2. Total share premium account by the end of December 31, 2021 is? 3. The amount to be added/deducted to retained earnings as a result of the equity swap is?

1. Determine the amount of the ordinary share capital at the end of 2021. 2. Total share premium account by the end of December 31, 2021 is? 3. The amount to be added/deducted to retained earnings as a result of the equity swap is?

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

1. Determine the amount of the ordinary share capital at the end of 2021.

2. Total share premium account by the end of December 31, 2021 is?
3. The amount to be added/deducted to retained earnings as a result of the equity swap is?

YELLOW CORPORATION had the following balances from the 2020 transactions:
Ordinary share capital, par value Php 10, authorized 300,000 shares, issued and outstanding,
120,000 shares
1,200,000.00
Share premium
180,000.00
Retained earnings
720,000.00
The following transactions occurred during the year 2021:
1. Acquired 8,000 of its own ordinary shares for Php 144,000. YELLOW CORPORATION utilitizes cost method of accounting for
treasury shares.
2. Sold 6,500 treasury shares at Php 20 per share
3. Retired the remaining treasury shares.
4. YELLOW CORPORATION owes Php 10,000,000 to GREEN BANK. Unpaid interest on this loan has been accrued in the amount
of Php 100,000. Because YELLOW CORPORATION is in financial trouble, GREEN BANK agreed to accept from the corporation
160,000 shares that have a fair value of Php 8,000,000 in full settlement of the Php 10,000,000 obligation.

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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