5. Use the same information given in Problem 1. What is the total cost of the remaining treasury shares? O a. PO O b. P200,000 c. P260,000
5. Use the same information given in Problem 1. What is the total cost of the remaining treasury shares? O a. PO O b. P200,000 c. P260,000
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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Question
![1. The PowerPoint
Corporation has two classes
of share capital outstanding:
9% (dividend rate), P20 par,
Preference and P70 par,
Ordinary. During the fiscal
year ending December 31,
2012, the company had the
equity transactions in
chronological order as
reflected in the table below.
Dividends were paid at the
end of the fiscal year on the
ordinary share at P1.20 per
share and on the preference
at the preference rate. Profit
for the year was P850,000.
No. of shares
Price per share
Issue of preference share
10,000
P28
Issue of ordinary share
35,000
70
Reacquisition and retirement of preference
2,000
30
Purchase of treasury ordinary share
5,000
80
Share split
2-for-1
Reissue of treasury ordinary share.
5,000
52
Balances of the accounts in the shareholders' equity section of the December 31, 2011 statement of financial
position were:
Preference Share Capital, 50,000 shares
P1,000,000
Ordinary Share Capital, 100,000 shares
7,000,000
Share Premium - Preference
400,000
Share Premium-Ordinary
1,200,000
Retained Earnings
550,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F71ae9ba1-a6e1-4957-9e88-3362cdd17450%2F0aaf26ab-b8e7-4285-9f70-3a1317a3f832%2Fo4hrq9t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. The PowerPoint
Corporation has two classes
of share capital outstanding:
9% (dividend rate), P20 par,
Preference and P70 par,
Ordinary. During the fiscal
year ending December 31,
2012, the company had the
equity transactions in
chronological order as
reflected in the table below.
Dividends were paid at the
end of the fiscal year on the
ordinary share at P1.20 per
share and on the preference
at the preference rate. Profit
for the year was P850,000.
No. of shares
Price per share
Issue of preference share
10,000
P28
Issue of ordinary share
35,000
70
Reacquisition and retirement of preference
2,000
30
Purchase of treasury ordinary share
5,000
80
Share split
2-for-1
Reissue of treasury ordinary share.
5,000
52
Balances of the accounts in the shareholders' equity section of the December 31, 2011 statement of financial
position were:
Preference Share Capital, 50,000 shares
P1,000,000
Ordinary Share Capital, 100,000 shares
7,000,000
Share Premium - Preference
400,000
Share Premium-Ordinary
1,200,000
Retained Earnings
550,000
![5. Use the same information
given in Problem 1. What is
the total cost of the
remaining treasury shares?
O a. PO
O b. P200,000
O c. P260,000
O d. P400,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F71ae9ba1-a6e1-4957-9e88-3362cdd17450%2F0aaf26ab-b8e7-4285-9f70-3a1317a3f832%2F1fmsqv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5. Use the same information
given in Problem 1. What is
the total cost of the
remaining treasury shares?
O a. PO
O b. P200,000
O c. P260,000
O d. P400,000
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