12. On Jan. 1, 2019, Giron Corp. reported the following on its shareholders' equity section: Ordinary Shares, P5 par value, authorized 200,000 shares, issued 100,000 shares Share Premium-Ordinary Retained Earnings P 500,000 1,500,000 516,000 P2,516,000 Treasury Stock, at cost, 5,000 shares Total Shareholders' Equity (40,000) P2,476,000 The following events occurred in 2019: May 1: July 9: 1,000 shares of treasury stock were sold for P10,000. 10,000 shares of previousiy unissued ordinary shares were sold foř P12 per share. Oct. 1: The distribution of a 2-for-1 share split resulted in the ordinary shares' per share par value being halved. Giron accounts for treasury stock under the cost method. On Dec. 31, 2019, the total par value of the issued ordinary shares should be а. P550,000. b. P518,000. С. P291,000. d. P530,000.

12. On Jan. 1, 2019, Giron Corp. reported the following on its shareholders' equity section: Ordinary Shares, P5 par value, authorized 200,000 shares, issued 100,000 shares Share Premium-Ordinary Retained Earnings P 500,000 1,500,000 516,000 P2,516,000 Treasury Stock, at cost, 5,000 shares Total Shareholders' Equity (40,000) P2,476,000 The following events occurred in 2019: May 1: July 9: 1,000 shares of treasury stock were sold for P10,000. 10,000 shares of previousiy unissued ordinary shares were sold foř P12 per share. Oct. 1: The distribution of a 2-for-1 share split resulted in the ordinary shares' per share par value being halved. Giron accounts for treasury stock under the cost method. On Dec. 31, 2019, the total par value of the issued ordinary shares should be а. P550,000. b. P518,000. С. P291,000. d. P530,000.

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. On Jan. 1, 2019, Giron Corp. reported the following on its shareholders' equity
section:
Ordinary Shares, P5 par value, authorized 200,000 shares,
issued 100,000 shares
Share Premium-Ordinary
Retained Earnings
P 500,000
1,500,000
516,000
P2,516,000
Treasury Stock, at cost, 5,000 shares
Total Shareholders' Equity
(40,000)
P2,476,000
The following events occurred in 2019:
May 1:
July 9:
1,000 shares of treasury stock were sold for P10,000.
10,000 shares of previously unissued ordinary shares were sold for P12 per
share.
Oct. 1:
The distribution of a 2-for-1 share split resulted in the ordinary shares' per share
par value being halved.
Giron accounts for treasury stock under the cost method. On Dec. 31, 2019, the
total par value of the issued ordinary shares should be
а.
P550,000.
P518,000.
P291,000.
d. P530,000.
C.

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