ATC Company issued all of its outstanding shares for P150 in 2008. On January 10, 2009, ATC acquired 100,000 treasury shares at P120 per share. ATC reissued 50,000 treasury shares for P7,500,000 on June 30, 2010 and retired the rest on December 31, 2010. ATC’s equity accounts as at December 31, 2009 follow: Share capital, P100 par value P150,000,000 Share premium 75,000,000 Retained earnings 25,000,000 Total P250,000,000 What shall be the balance of share capital account on December 31, 2010? 2. The capital accounts of Kamprad, Inc. on December 31, 2009, were as follows: Preference share capital, 20,000 shares, P20 par P 400,000 Share premium - preference 160,000 Ordinary share capital, 50,000 shares, P80 par 4,000,000 Share premium – ordinary 600,000 Retained earnings 360,000 During the year ending December 31, 2010, the following summarizes the transactions affecting the shareholders’ equity April 30 - 1,000 preference shares were retired at P25 per share. June 15 - 2,000 treasury shares, ordinary, were purchased at P85 per share June 30 - A two-for-one ordinary share split was declared. July 31 - 800 treasury shares were reissued at P50 per share. Dec. 31 – Profit for 2010 was P1,700,000. What was the total share premium on December 31, 2010?
ATC Company issued all of its outstanding shares for P150 in 2008. On January 10, 2009, ATC acquired 100,000 treasury shares at P120 per share. ATC reissued 50,000 treasury shares for P7,500,000 on June 30, 2010 and retired the rest on December 31, 2010. ATC’s equity accounts as at December 31, 2009 follow: Share capital, P100 par value P150,000,000 Share premium 75,000,000 Retained earnings 25,000,000 Total P250,000,000 What shall be the balance of share capital account on December 31, 2010? 2. The capital accounts of Kamprad, Inc. on December 31, 2009, were as follows: Preference share capital, 20,000 shares, P20 par P 400,000 Share premium - preference 160,000 Ordinary share capital, 50,000 shares, P80 par 4,000,000 Share premium – ordinary 600,000 Retained earnings 360,000 During the year ending December 31, 2010, the following summarizes the transactions affecting the shareholders’ equity April 30 - 1,000 preference shares were retired at P25 per share. June 15 - 2,000 treasury shares, ordinary, were purchased at P85 per share June 30 - A two-for-one ordinary share split was declared. July 31 - 800 treasury shares were reissued at P50 per share. Dec. 31 – Profit for 2010 was P1,700,000. What was the total share premium on December 31, 2010?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ATC Company issued all of its outstanding shares for
P150 in 2008. On January 10, 2009, ATC acquired
100,000 treasury shares at P120 per share. ATC
reissued 50,000 treasury shares for P7,500,000 on
June 30, 2010 and retired the rest on December 31,
2010. ATC’s equity accounts as at December 31, 2009
follow:
Share capital, P100 par value
P150,000,000
Share premium
75,000,000
25,000,000
Total
P250,000,000
What shall be the balance of share capital account on
December 31, 2010?
2.
Preference share capital,
The capital accounts of Kamprad, Inc. on December
31, 2009, were as follows:
20,000 shares, P20 par
P 400,000
Share premium - preference
160,000
Ordinary share capital,
50,000 shares, P80 par
4,000,000
Share premium – ordinary
600,000
Retained earnings
360,000
During the year ending December 31, 2010, the
following summarizes the transactions affecting the
shareholders’ equity
April 30 - 1,000 preference shares were retired at P25
per share.
June 15 - 2,000 treasury shares, ordinary, were
purchased at P85 per share
June 30 - A two-for-one ordinary share split was
declared.
July 31 - 800 treasury shares were reissued at P50 per
share.
Dec. 31 – Profit for 2010 was P1,700,000.
What was the total share premium on December 31,
2010?
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