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BC Company had 20,000 shares par value treasury shares that ere acquired in 2018 at P 24 per share. In May 1,2019, additional 5,000 shares were acquired and immediately retired at P 26 each. These shares were originally issued at P 23. n June 1,2019, ABC issued 15,000 of the treasury shares at P 20 each. The cost method is ed to record the treasury shares transaction. December 31,2019, what amount should ABC show in its notes to financial statements sa restriction of retained earnings as a result of its treasury share transactions? * G 120,000 10,000 480,000

BC Company had 20,000 shares par value treasury shares that ere acquired in 2018 at P 24 per share. In May 1,2019, additional 5,000 shares were acquired and immediately retired at P 26 each. These shares were originally issued at P 23. n June 1,2019, ABC issued 15,000 of the treasury shares at P 20 each. The cost method is ed to record the treasury shares transaction. December 31,2019, what amount should ABC show in its notes to financial statements sa restriction of retained earnings as a result of its treasury share transactions? * G 120,000 10,000 480,000

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 December 31,2018, ABC Company had 20,000 shares of P 20 par value treasury shares that were acquired in 2018 at P 24 per share. In May 1,2019, additional 5,000 shares were reacquired and immediately retired at P 26 each. These shares were originally issued at P 23. On June 1,2019, ABC issued 15,000 of the treasury shares at P 20 each. The cost method is used to record the treasury shares transaction. At December 31,2019, what amount should ABC show in its notes to financial statements as a restriction of retained earnings as a result of its treasury share transactions? * O P 120,000 O P 10,000 O P 480,000 O P 130,000
Transcribed Image Text:At December 31,2018, ABC Company had 20,000 shares of P 20 par value treasury shares that were acquired in 2018 at P 24 per share. In May 1,2019, additional 5,000 shares were reacquired and immediately retired at P 26 each. These shares were originally issued at P 23. On June 1,2019, ABC issued 15,000 of the treasury shares at P 20 each. The cost method is used to record the treasury shares transaction. At December 31,2019, what amount should ABC show in its notes to financial statements as a restriction of retained earnings as a result of its treasury share transactions? * O P 120,000 O P 10,000 O P 480,000 O P 130,000
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