Answered: At december 31 2019 Facebook company…

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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A. At december 31 2019 Facebook company had 20,000 shares of P20 par value treasury shares wich were acquired at P24 per share.in May 2020, Facebook issued 15,000 of the treasury shares shares at P20 each .The cost method is used to record the treasury share transactions.At December 31,2020 what amount should Facebook show in notes to Financial statements as a restriction of retained earnings as a result of it's treasury share transaction? B. At the beginning of 2020, Tradewell Mktg.Corp.had retained earning of P5,000,000 throughout the year , the company had P20,000 shares of P100 par value ordinary shares that are issued and outstanding. During the year 2020, Tradewell Mktg.Corp. reported profit of 2,500,000 purchased a treasury shares of P750,000 declared a cash dividends of 2,000,000 reissued all treasury shares at a gain of P180,000 and declared and issued 500 shares as a bonus issue when the market value was P150 per share. C. What is the retained earning balance at december 31,2020 ?

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