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At the beginning of the current year, Di Na Muli, Inc. was authorized to issue 100,000 shares with a P50 par value. The entity had the following share capital transactions during the year: January 1 April 1 May 1 Sold 80,000 shares at P60 per share Reacquired 4,000 treasury shares at P75 per share Approved a 5-for 1 share split September 30 Issued a 10% share dividend when the market value of a share November 30 was P30 Reissued 4,000 treasury shares at P40 per share

At the beginning of the current year, Di Na Muli, Inc. was authorized to issue 100,000 shares with a P50 par value. The entity had the following share capital transactions during the year: January 1 April 1 May 1 Sold 80,000 shares at P60 per share Reacquired 4,000 treasury shares at P75 per share Approved a 5-for 1 share split September 30 Issued a 10% share dividend when the market value of a share November 30 was P30 Reissued 4,000 treasury shares at P40 per share

FINANCIAL ACCOUNTING
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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At the beginning of the current year, Di Na Muli, Inc. was authorized to issue 100,000 shares with a P50 par value. The entity had the following share capital transactions during the year: January 1 April 1 Sold 80,000 shares at P60 per share May 1 Reacquired 4,000 treasury shares at P75 per share Approved a 5-for 1 share split September 30 Issued a 10% share dividend when the market value of a share November 30 was P30 Reissued 4,000 treasury shares at P40 per share December 31 Net income for the year was P4,000,000 1. What amount should Di Na Muli, Inc. report as additional paid-in capital at the end of the year? How many shares were outstanding on December 31?
Transcribed Image Text:At the beginning of the current year, Di Na Muli, Inc. was authorized to issue 100,000 shares with a P50 par value. The entity had the following share capital transactions during the year: January 1 April 1 Sold 80,000 shares at P60 per share May 1 Reacquired 4,000 treasury shares at P75 per share Approved a 5-for 1 share split September 30 Issued a 10% share dividend when the market value of a share November 30 was P30 Reissued 4,000 treasury shares at P40 per share December 31 Net income for the year was P4,000,000 1. What amount should Di Na Muli, Inc. report as additional paid-in capital at the end of the year? How many shares were outstanding on December 31?
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