ATC Company issued all of its outstanding shares for P150 in 2018. On January 10, 2019, ATC acquired 100,000 treasury shares at P120 per share. ATC reissued 50,000 treasury shares for P7,500,000 on June 30, 2020 and retired the rest on December 31, 2020. ATC's equity accounts as at December 31, 2019 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, 2020? O P144,000,000 P140,000,000 P145,000,000 O P150,000,000

ATC Company issued all of its outstanding shares for P150 in 2018. On January 10, 2019, ATC acquired 100,000 treasury shares at P120 per share. ATC reissued 50,000 treasury shares for P7,500,000 on June 30, 2020 and retired the rest on December 31, 2020. ATC's equity accounts as at December 31, 2019 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, 2020? O P144,000,000 P140,000,000 P145,000,000 O P150,000,000

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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ABC Co. was organized on January 1, 2019, with an authorization of 1.200.000 ordinary shares with a par value of Rp6 per share. During 2019, the corporation had the capital transactions as provided below. ABC Co. used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of share premium as of December 31, 2019?
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