Harbottle Corporation was organized on January 3, 2021, with an authorized capital of 100,000 shares of P10 par ordinary shares. At the beginning of 2022, 40,000 shares were issued, totalling P480,000 and retained earnings of P250,000. During 2022, Harbottle had the following transactions affecting shareholders' equity: July 7--Purchased 6,000 shares of its own as treasury shares at P13 per share; Sept 21 -- Sold 2,000 treasury shares at P10. The cost method was used to record the treasury shares transaction. Harbottle's net income for 2022 is P300,000. What is the amount of shareholders' equity on December 31, 2022?
Harbottle Corporation was organized on January 3, 2021, with an authorized capital of 100,000 shares of P10 par ordinary shares. At the beginning of 2022, 40,000 shares were issued, totalling P480,000 and retained earnings of P250,000. During 2022, Harbottle had the following transactions affecting shareholders' equity: July 7--Purchased 6,000 shares of its own as treasury shares at P13 per share; Sept 21 -- Sold 2,000 treasury shares at P10. The cost method was used to record the treasury shares transaction. Harbottle's net income for 2022 is P300,000. What is the amount of shareholders' equity on December 31, 2022?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
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Harbottle Corporation was organized on January 3, 2021, with an authorized capital of 100,000 shares of P10 par ordinary shares. At the beginning of 2022, 40,000 shares were issued, totalling P480,000 and
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