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 1Issued 40,000 ordinary shares at P130 per share.February 1Issued 30,000 ordinary for the following assets: Machine 500,000 Fair value Land-None Building1,100,000Fair value Ordinary shares P120Fair valueJuly 1Purchased 10,000 ordinary shares at P150 per share to be held as treasury.August 1Declared a 2 for 1 split.September 15Reissued 5,000 treasury shares at P100 per shareDecember 31Declared a P10 per share cash dividend on the ordinary shares.December 31Net income for the year is P3,000,000.What is the share premium at year-end?Group of answer choices1,800,0001,925,0001,200,0001,325,000

A shareholder, also referred to as a stockholder. He is a person or company, that owns at least one…

Answered: On January 1, 2023, Flips Company is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

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 premium at year-end?

Group of answer choices

1,800,000

1,925,000

1,200,000

1,325,000

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions