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
Chapter1: Financial Statements And Business Decisions
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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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