An entity was organized at the beginning of the current year with 100,000 authorized shares of P100 par value. During the current year, the following transactions occurred: January 1 February 1 Sold 30,000 shares at P150 per share Issued 2,000 shares for legal services with a fair value of P250,000. The shares on this date are quoted at P140 per share purchased 5,000 treasury shares at March 1 cost of P120 per a share October 31 issued P5,000,000 convertible bonds at are quoted at 98 without he conversion feature. Declared a 2-for-1 share split when the market value of 120. The bonds November 15 the share was P160 December 15 Sold 10,000 shares at P75 per share The net income for the year was P2,000,000 December 31

An entity was organized at the beginning of the current year with 100,000 authorized shares of P100 par value. During the current year, the following transactions occurred: January 1 February 1 Sold 30,000 shares at P150 per share Issued 2,000 shares for legal services with a fair value of P250,000. The shares on this date are quoted at P140 per share purchased 5,000 treasury shares at March 1 cost of P120 per a share October 31 issued P5,000,000 convertible bonds at are quoted at 98 without he conversion feature. Declared a 2-for-1 share split when the market value of 120. The bonds November 15 the share was P160 December 15 Sold 10,000 shares at P75 per share The net income for the year was P2,000,000 December 31

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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In computations of weighted average of shares outstanding, when a stock dividend or stock split occurs, the additional shares are weighted by the number of days outstanding. weighted by the number of months outstanding. considered outstanding at the beginning of the year. considered outstanding at the beginning of the earliest year reported.
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