On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market price of the stock is P50 per share. The company also has 50,000 ordinary shares in the treasury reacquired at a total cost of P1,650,000. On the same date, Funk Company declared a 1 for 5 share split. Immediately before the split, the total share premium was P1,500,000. What should be the balance in Funk Company's Ordinary Share account after the share split is effected? A. 25,000,000 B. 10,000,000 C. 20,000,000 D. 2,000,000 If half of treasury shares were reissued at P10 per share, the entry record the reissuance shall involve: A. Debit to Accumulated profits at P425,000. B. Credit to Share Premium at P425,000. C. Debit to Accumulated Profits at P850,000. D. Credit to Share premium at P850,000.
On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market price of the stock is P50 per share. The company also has 50,000 ordinary shares in the treasury reacquired at a total cost of P1,650,000. On the same date, Funk Company declared a 1 for 5 share split. Immediately before the split, the total share premium was P1,500,000.
What should be the balance in Funk Company's Ordinary Share account after the share split is effected?
A. 25,000,000
B. 10,000,000
C. 20,000,000
D. 2,000,000
If half of treasury shares were reissued at P10 per share, the entry record the reissuance shall involve:
A. Debit to
B. Credit to Share Premium at P425,000.
C. Debit to Accumulated Profits at P850,000.
D. Credit to Share premium at P850,000.
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