17. Use the following information for the next five (5) questions: Crusher Company reported the following shareholders’ equity on January 1, 2022: Share capital, P100 par 6,000,000 Share premium 500,000 Retained earnings 1,800,000 Transactions during the year and other information relating to shareholders’ equity account were as follows: On January 26, the entity reacquired for cash 5,000 shares for P110 per share. On April 4, the entity sold for cash 3,000 shares of treasury for P140 per share. On June 1, the entity declared a cash dividend of P20 per share, payable July 5, to shareholders of record on July 1. On November 1, the entity declared a 2 for 1 split and changed the par value from P100 to P50. On November 20, shares were issued for the share split. On December 5, 4,000 shares were issued in exchange for a second hand equipment. The equipment originally cost P400,000, was carried by the previous owner at a carrying amount of P200,000 and was fairly valued at P260,000. Net income for the current year was P1,730,000. Appropriated retained earnings equal to the cost of treasury shares. Questions: What amount should be reported as total share premium on December 31, 2022? Group of answer choices 650,000 680,000 590,000 730,000

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

17.

Use the following information for the next five (5) questions:

Crusher Company reported the following shareholders’ equity on January 1, 2022:

Transactions during the year and other information relating to shareholders’ equity account were as follows:

On January 26, the entity reacquired for cash 5,000 shares for P110 per share.
On April 4, the entity sold for cash 3,000 shares of treasury for P140 per share.
On June 1, the entity declared a cash dividend of P20 per share, payable July 5, to shareholders of record on July 1.
On November 1, the entity declared a 2 for 1 split and changed the par value from P100 to P50. On November 20, shares were issued for the share split.
On December 5, 4,000 shares were issued in exchange for a second hand equipment. The equipment originally cost P400,000, was carried by the previous owner at a carrying amount of P200,000 and was fairly valued at P260,000.
Net income for the current year was P1,730,000.
Appropriated retained earnings equal to the cost of treasury shares.

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