ABC Company issued 50,000 shares for P100 per share. Par value of the shares is P10. During the year, the entity reacquired 2,000 shares at P150 per share. The said shares were immediately retired. What amount would be charged to retained earnings?

ABC Company issued 50,000 shares for P100 per share. Par value of the shares is P10. During the year, the entity reacquired 2,000 shares at P150 per share. The said shares were immediately retired. What amount would be charged to retained earnings?

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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