On Jan 1, 2019, Giron Corp. reported the following on its shareholder's equity section: Ordinary shares, P5 par value, authorized 200,000 shares, Issued 100,000 shares P 500,000 Share premium-Ordinary Retained Earnings 1,500,000 516,000 P2,516,000 (40,000) P2,476,000 Total Treasury Stock, at cost, 5,000 shares Total Shareholders' Equity The following events occurred in 2019: May 1 1,000 shares of treasury stock were sold for P10,000. July 9 10,000 shares of previously unissued ordinary shares were sold for P12 per share. Oct 1 The distribution of a 2-for-1 share split resulted in the ordinary shares' per share par value being halved. Giron accounts for treasury stock under the cost method. On Dec.31, 2019, the total par value of the issued ordinary shares should be A) P550,000 B) P518,000 C) P291,000 D P530,000
On Jan 1, 2019, Giron Corp. reported the following on its shareholder's equity section: Ordinary shares, P5 par value, authorized 200,000 shares, Issued 100,000 shares P 500,000 Share premium-Ordinary Retained Earnings 1,500,000 516,000 P2,516,000 (40,000) P2,476,000 Total Treasury Stock, at cost, 5,000 shares Total Shareholders' Equity The following events occurred in 2019: May 1 1,000 shares of treasury stock were sold for P10,000. July 9 10,000 shares of previously unissued ordinary shares were sold for P12 per share. Oct 1 The distribution of a 2-for-1 share split resulted in the ordinary shares' per share par value being halved. Giron accounts for treasury stock under the cost method. On Dec.31, 2019, the total par value of the issued ordinary shares should be A) P550,000 B) P518,000 C) P291,000 D P530,000
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:On Jan 1, 2019, Giron Corp. reported the following on its shareholder's equity section:
Ordinary shares, P5 par value, authorized 200,000 shares,
Issued 100,000 shares
P 500,000
Share premium-Ordinary
Retained Earnings
1,500,000
516,000
P2,516,000
(40,000)
P2,476,000
Total
Treasury Stock, at cost, 5,000 shares
Total Shareholders' Equity
The following events occurred in 2019:
May 1 1,000 shares of treasury stock were sold for P10,000.
July 9 10,000 shares of previously unissued ordinary shares were sold for P12 per share.
Oct 1 The distribution of a 2-for-1 share split resulted in the ordinary shares' per share par value being
halved.
Giron accounts for treasury stock under the cost method. On Dec.31, 2019, the total par value of the
issued ordinary shares should be
A) P550,000
B) P518,000
C) P291,000
D P530,000
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