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6. On December 31, 2012, Candid Company's board of directors canceled 5,000 shares of P50 par value held in treasury at an average cost of P120 per share. Before recording the cancellation of the treasury shares, the entity had the following balance in its shareholders' equity Share capital (50,000 shares originally issued at P75) 2,500,000 Share premium 1,250,000 Retained earnings 1,000,000 Treasury shares, at cost 600,000 On December 31, 2012, what amount should be reported as share capital outstanding? a. 2,500,000 b. 1,900,000 c. 2,250,000 d. 2,125,000

6. On December 31, 2012, Candid Company's board of directors canceled 5,000 shares of P50 par value held in treasury at an average cost of P120 per share. Before recording the cancellation of the treasury shares, the entity had the following balance in its shareholders' equity Share capital (50,000 shares originally issued at P75) 2,500,000 Share premium 1,250,000 Retained earnings 1,000,000 Treasury shares, at cost 600,000 On December 31, 2012, what amount should be reported as share capital outstanding? a. 2,500,000 b. 1,900,000 c. 2,250,000 d. 2,125,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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6. On December 31, 2012, Candid Company's board of directors canceled 5,000 shares of P50 par value held in treasury at an average cost of P120 per share. Before recording the cancellation of the treasury shares, the entity had the following balance in its shareholders' equity Share capital (50,000 shares originally issued at P75) 2,500,000 Share premium 1,250,000 Retained earnings 1,000,000 Treasury shares, at cost 600,000 On December 31, 2012, what amount should be reported as share capital outstanding? a. 2,500,000 b. 1,900,000 c. 2,250,000 d. 2,125,000
Transcribed Image Text:6. On December 31, 2012, Candid Company's board of directors canceled 5,000 shares of P50 par value held in treasury at an average cost of P120 per share. Before recording the cancellation of the treasury shares, the entity had the following balance in its shareholders' equity Share capital (50,000 shares originally issued at P75) 2,500,000 Share premium 1,250,000 Retained earnings 1,000,000 Treasury shares, at cost 600,000 On December 31, 2012, what amount should be reported as share capital outstanding? a. 2,500,000 b. 1,900,000 c. 2,250,000 d. 2,125,000
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