3. Bernabe Company reported the following equity accounts in January 1, 2020: 129 Share Capital, P20 par 8,000,000 Share premium 2,550,000 Retained earnings 1,275,000 All shares outstanding on January 1, 2020 were issued in 2019 for P26 per share. On December 31, 2020, the entity reacquired 20,000 shares at P24 per share and retired them. Immediately after the shares were retired, what is the balance of share premium? a. 2,430,000 b. 2,470,000 c. 2,510,000 d. 2,590,000
3. Bernabe Company reported the following equity accounts in January 1, 2020: 129 Share Capital, P20 par 8,000,000 Share premium 2,550,000 Retained earnings 1,275,000 All shares outstanding on January 1, 2020 were issued in 2019 for P26 per share. On December 31, 2020, the entity reacquired 20,000 shares at P24 per share and retired them. Immediately after the shares were retired, what is the balance of share premium? a. 2,430,000 b. 2,470,000 c. 2,510,000 d. 2,590,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...
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![3. Bernabe Company reported the following equity accounts in January 1, 2020:
129
30
Share Capital, P20 par
8,000,000
Share premium
2,550,000
Retained earnings
1,275,000
All shares outstanding on January 1, 2020 were issued in 2019 for P26 per share. On December
31, 2020, the entity reacquired 20,000 shares at P24 per share and retired them. Immediately
after the shares were retired, what is the balance of share premium?
a. 2,430,000
b. 2,470,000
c. 2,510,000
d. 2,590,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F930b1cda-6dc9-4955-9bcc-00391d1e6aa0%2F432bd31a-3015-49bb-a79f-7d690387b9fc%2Fhmfin1b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Bernabe Company reported the following equity accounts in January 1, 2020:
129
30
Share Capital, P20 par
8,000,000
Share premium
2,550,000
Retained earnings
1,275,000
All shares outstanding on January 1, 2020 were issued in 2019 for P26 per share. On December
31, 2020, the entity reacquired 20,000 shares at P24 per share and retired them. Immediately
after the shares were retired, what is the balance of share premium?
a. 2,430,000
b. 2,470,000
c. 2,510,000
d. 2,590,000
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