Problem 21-14 (IAA)Atthe beginning of current year, Precious Company waswith a par value of P6 per share.organized with an authorization of 1,200,000 ordinary sharescapital transactions:During the current year, the entity had the following shareJanuaryJuly5 Issued 675,000 shares at P10 per shareshare28 Purchased 90,000 treasury shares at P11 perSold the 90,000 shares held in treasury at P18per share beinDecember 31350,000The entity used the cost method to record the purchase andreissuance of the treasury shares.What total amount should be reported as share premium atyear-end?SHa. 3,330,000b. 2,070,000c. 2,700,000d.0753200000.001 6:STABIL

Lets understand the basics. Under cost method of tresury stock, when any shares repurchased then…

At th beginning of current year, Precious Company was organized with an authorization of 1,200,000 ordinary shares with a par value of P6 per share. -During the current year, the entity had the following share capital transactions: January July 5 Issued 675,000 shares at P10 per share d 28 Purchased 90,000 treasury shares at P11 per share Sold the 90,000 shares held in treasury at P18 per share December 31 The entity used the cost method to record the purchase and reissuance of the treasury shares. What total amount should be reported as share premium at year-end? a. 3,330,000 . 2,070,000 C. 2,700,000 0 000,00 00009 0 000 5 000.001

At th beginning of current year, Precious Company was organized with an authorization of 1,200,000 ordinary shares with a par value of P6 per share. -During the current year, the entity had the following share capital transactions: January July 5 Issued 675,000 shares at P10 per share d 28 Purchased 90,000 treasury shares at P11 per share Sold the 90,000 shares held in treasury at P18 per share December 31 The entity used the cost method to record the purchase and reissuance of the treasury shares. What total amount should be reported as share premium at year-end? a. 3,330,000 . 2,070,000 C. 2,700,000 0 000,00 00009 0 000 5 000.001

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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Question

Problem 21-14 (IAA)
At
the beginning of current year, Precious Company was
with a par value of P6 per share.
organized with an authorization of 1,200,000 ordinary shares
capital transactions:
During the current year, the entity had the following share
January
July
5 Issued 675,000 shares at P10 per share
share
28 Purchased 90,000 treasury shares at P11 per
Sold the 90,000 shares held in treasury at P18
per share bein
December 31
350,000
The entity used the cost method to record the purchase and
reissuance of the treasury shares.
What total amount should be reported as share premium at
year-end?
SH
a. 3,330,000
b. 2,070,000
c. 2,700,000
d.
0
753
200
000.001 6:
STABIL

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