1. Determine the year end balance of the Treasury Shares.2. Determine the year end balance of the Ordinary Share Capital. 3. Determine the year end balance of the Share Premium - Issuance. The shareholders'equity of PINK COMPANY as of December 31, 2020 is as follows:Ordinary share, Php 10 par, authorized 300,000 shares; 250,000 shares issued and outstanding2,500,000.00Share premium - issuance3,500,000.00Retained Earnings1,740,000.00On June 1, 2021, PINK reacquired 40,000 ordinary shares at Php 40. The following transactions occurred in 2021 with regard tothese shares. (Assume cost method of accounting)1-Jul Sold 15,000 shares at Php 481-Aug Sold 19,000 shares at Php 271-Sep Retired 1,000 shares

Buy-back of shares means the re-acquisition of the share capital of own company from the capital…

Answered: 1. Determine the year end balance of…

1. Determine the year end balance of the Treasury Shares. 2. Determine the year end balance of the Ordinary Share Capital. 3. Determine the year end balance of the Share Premium - Issuance.

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

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

1. Determine the year end balance of the Treasury Shares.
2. Determine the year end balance of the Ordinary Share Capital.
3. Determine the year end balance of the Share Premium - Issuance.

The shareholders'equity of PINK COMPANY as of December 31, 2020 is as follows:
Ordinary share, Php 10 par, authorized 300,000 shares; 250,000 shares issued and outstanding
2,500,000.00
Share premium - issuance
3,500,000.00
Retained Earnings
1,740,000.00
On June 1, 2021, PINK reacquired 40,000 ordinary shares at Php 40. The following transactions occurred in 2021 with regard to
these shares. (Assume cost method of accounting)
1-Jul Sold 15,000 shares at Php 48
1-Aug Sold 19,000 shares at Php 27
1-Sep Retired 1,000 shares

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