In 2019, Jed Incorporated issued 75,000 shares of P10 par value for P100 per share. In 2020, the entity reacquired 3,000 shares at P150 per share and immediately cancelled these 3,000 shares. In relation with the retirement of shares, what amount should be debited to share premium and retained earnings respectively? A. P30,000 and P420,000 B. P150,000 and P270,000 C. P270,000 and P150,000 D. P420,000 and 0
In 2019, Jed Incorporated issued 75,000 shares of P10 par value for P100 per share. In 2020, the entity reacquired 3,000 shares at P150 per share and immediately cancelled these 3,000 shares. In relation with the retirement of shares, what amount should be debited to share premium and retained earnings respectively? A. P30,000 and P420,000 B. P150,000 and P270,000 C. P270,000 and P150,000 D. P420,000 and 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![In 2019, Jed Incorporated issued 75,000 shares of P10 par value for P100 per share. In 2020, the entity reacquired 3,000 shares at P150 per share
and immediately cancelled these 3,000 shares. In relation with the retirement of shares, what amount should be debited to share premium and
retained earnings respectively?
A. P30,000 and P420,000
B. P150,000 and P270,000
C. P270,000 and P150,000
D. P420,000 and 0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff28ab72b-d380-42ad-aecf-2c6b585eed4c%2Fe9d8512d-bde6-4784-b7f1-bb114777cbb6%2Fjjtyiy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In 2019, Jed Incorporated issued 75,000 shares of P10 par value for P100 per share. In 2020, the entity reacquired 3,000 shares at P150 per share
and immediately cancelled these 3,000 shares. In relation with the retirement of shares, what amount should be debited to share premium and
retained earnings respectively?
A. P30,000 and P420,000
B. P150,000 and P270,000
C. P270,000 and P150,000
D. P420,000 and 0
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