4. Raymond Corporation has 7,500 ordinary shares in its treasury with par value of P100 and cost of P120. The shares were originally issued for P110 per share. The account "Share premium - Treasury" had a balance of P30,000. At the end of 2020, Raymond decided to retire its treasury shares. Which of the following is incorrect? A. Ordinary shares and Share Premium -ordinary will be debited by P750,000 and P75,000, respectively, as a result of the retirement of treasury shares. B. Retained eamings wil be debited by P45,000 when the treasury shares are retired. C. Treasury shares account will be credted by P750,000 upon retirement. D. Share premium - Treasury will have no balance at the end of the year after the retirement had been recorded.

4. Raymond Corporation has 7,500 ordinary shares in its treasury with par value of P100 and cost of P120. The shares were originally issued for P110 per share. The account "Share premium - Treasury" had a balance of P30,000. At the end of 2020, Raymond decided to retire its treasury shares. Which of the following is incorrect? A. Ordinary shares and Share Premium -ordinary will be debited by P750,000 and P75,000, respectively, as a result of the retirement of treasury shares. B. Retained eamings wil be debited by P45,000 when the treasury shares are retired. C. Treasury shares account will be credted by P750,000 upon retirement. D. Share premium - Treasury will have no balance at the end of the year after the retirement had been recorded.

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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ABC Co. 's shareholders' equity on December 31,2020 are as follows: 7% preference shares P100 par P3,000,000 Ordinary share capital, 50,000 shares P1,500,000 Donated capital P500,000 Accumulated profits P4,500,000. All preference dividends have been fully paid. If preference shares have total liquidation value of P3,200,000, how much is the book value per ordinary share?
What is the correct answer?
Blossom, Inc. has $500,000, $0.50, no par value preferred shares (50,000 shares) and $1,000,000 of no par value common shares outstanding (80,000 shares). No dividends were paid or declared during 2021 and 2022. The company wants to distribute $273,500 in dividends on December 31, 2023. (a) Your answer has been saved. See score details after the due date. Calculate the amount of dividends to be paid to each group of shareholders (.e., preferred and common), assuming the preferred shares are non-cumulative and non-participating. Preferred Total dividends $ 25000 Common 248500 Attempts: 1 of 1 used
Hh1.
If a corporation reissued at P200 per share 100 shares of treasury stock that it had previously acquired for P280 per share and there wasn’t any Share Premium-Treasury it would debit a. Loss on Sale of Treasury Stock for P8,000 b. Share Premium-Ordinary for P8,000 c. Retained Earnings for P8,000 d. Treasury stock for P8,000 What letter has the right answer? Explain each why the other choices is not the answer.
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Provide Answer with calculation and explanation
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E16-18. Please show all workings clearly.