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Manuel Lim, an investor, had the chares uring the vear 207

Manuel Lim, an investor, had the chares uring the vear 207

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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Manuel Lim, an investor, had the following transactions on Apollo Mining Corporation ordinary shares during the year 2020: Feb. 8 Purchased 200 shares of Apollo ordinary shares at P60 per share, plus broker's commission of P720 June 10 Received a 100% stock dividend and a cash dividend of P5 per share Nov. 3 Received stock rights entitling him to purchase one new share at P50 for every four shares held. On this date, rights had a market value of P5 each. Nov. 10 Sold 100 rights at P8 each. Nov. 30 Sold 200 shares at P80 each. Stock rights were accounted separately. What is the gain on sale of 100 stock rights on November 10, 2020? а. 0 b. P100 c. P200 d. P300
Transcribed Image Text:Manuel Lim, an investor, had the following transactions on Apollo Mining Corporation ordinary shares during the year 2020: Feb. 8 Purchased 200 shares of Apollo ordinary shares at P60 per share, plus broker's commission of P720 June 10 Received a 100% stock dividend and a cash dividend of P5 per share Nov. 3 Received stock rights entitling him to purchase one new share at P50 for every four shares held. On this date, rights had a market value of P5 each. Nov. 10 Sold 100 rights at P8 each. Nov. 30 Sold 200 shares at P80 each. Stock rights were accounted separately. What is the gain on sale of 100 stock rights on November 10, 2020? а. 0 b. P100 c. P200 d. P300
.Manuel Lim, an investor, had the following transactions on Apollo Mining Corporation ordinary shares during the year 2020: Feb. 8 Purchased 200 shares of Apollo ordinary shares at P60 per share, plus broker's commission of P720 June 10 Received a 100% stock dividend and a cash dividend of P5 per share Nov. 3 Received stock rights entitling him to purchase one new share at P50 for every four shares held. On this date, rights had a market value of P5 each. Nov. 10 Sold 100 rights at P8 each. Nov. 30 Sold 200 shares at P80 each. Stock rights were accounted separately. How much is the gain from sale of the 200 shares on November 30, 2020? а. 10,640 b. 9,640 3,280 C. d. zero
Transcribed Image Text:.Manuel Lim, an investor, had the following transactions on Apollo Mining Corporation ordinary shares during the year 2020: Feb. 8 Purchased 200 shares of Apollo ordinary shares at P60 per share, plus broker's commission of P720 June 10 Received a 100% stock dividend and a cash dividend of P5 per share Nov. 3 Received stock rights entitling him to purchase one new share at P50 for every four shares held. On this date, rights had a market value of P5 each. Nov. 10 Sold 100 rights at P8 each. Nov. 30 Sold 200 shares at P80 each. Stock rights were accounted separately. How much is the gain from sale of the 200 shares on November 30, 2020? а. 10,640 b. 9,640 3,280 C. d. zero
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