On January 1, 2023, Flips Company is authorized to issue 100,000 P100 par value ordinary shares. The following transactions occurred during 2023: January 1 Issued 40,000 ordinary shares at P130 per share. February 1 Issued 30,000 ordinary for the following assets: Machine 500,000 Fair value Land - None Building 1,100,000 Fair value Ordinary shares P120 Fair value July 1 Purchased 10,000 ordinary shares at P150 per share to be held as treasury. August 1 Declared a 2 for 1 split. September 15 Reissued 5,000 treasury shares at P100 per share December 31 Declared a P10 per share cash dividend on the ordinary shares. December 31 Net income for the year is P3,000,000. What is the share capital at year-end? Group of answer choices 7,000,000 6,000,000 6,250,000 5,000,000
On January 1, 2023, Flips Company is authorized to issue 100,000 P100 par value ordinary shares. The following transactions occurred during 2023: January 1 Issued 40,000 ordinary shares at P130 per share. February 1 Issued 30,000 ordinary for the following assets: Machine 500,000 Fair value Land - None Building 1,100,000 Fair value Ordinary shares P120 Fair value July 1 Purchased 10,000 ordinary shares at P150 per share to be held as treasury. August 1 Declared a 2 for 1 split. September 15 Reissued 5,000 treasury shares at P100 per share December 31 Declared a P10 per share cash dividend on the ordinary shares. December 31 Net income for the year is P3,000,000. What is the share capital at year-end? Group of answer choices 7,000,000 6,000,000 6,250,000 5,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Use the following information for the next four (4) questions:
On January 1, 2023, Flips Company is authorized to issue 100,000 P100 par value ordinary shares. The following transactions occurred during 2023:
|
January 1 |
Issued 40,000 ordinary shares at P130 per share. |
|||
|
February 1 |
Issued 30,000 ordinary for the following assets: |
|||
|
|
Machine |
500,000 |
Fair value |
|
|
|
Land |
- |
None |
|
|
|
Building |
1,100,000 |
Fair value |
|
|
|
Ordinary shares
|
P120 |
Fair value |
|
|
July 1 |
Purchased 10,000 ordinary shares at P150 per share to be held as treasury. |
|||
|
August 1 |
Declared a 2 for 1 split. |
|||
|
September 15 |
Reissued 5,000 treasury shares at P100 per share |
|||
|
December 31 |
Declared a P10 per share cash dividend on the ordinary shares. |
|||
|
December 31 |
Net income for the year is P3,000,000. |
|||
- What is the share capital at year-end?
Group of answer choices
7,000,000
6,000,000
6,250,000
5,000,000
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