6 On July 1. 2021, Funk Company has 400.000 shares of P25 par ordinary outstanding and the market price of the stock is P50per share. The company also has 50,000 ordinary shares in the treasury reacquired at a total cost of P1,650,000 On the samedate, Funk Company declarcd a 1 for 5 share split. Immediately before the split. the total Sharc premium was P1,500.000.If half of the trcasury shares were reissucd at P10 per share, the entry to record the reissuance shall involve:C Debit to Accumulated profits at P850.000,O Credit to Share premium at P425.000.ODebit to ACcumulated profits at P425.000.O Credit to Share premium at P850.000,

Cost per treasury stock = Total costs / no. of treasury stock = P1650000/(50000*5) shares = P6.6 per…

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. If half of the treasury shares were reissucd at P10 per share, the entry to record the reissuance shall involve: O Debit to Accumulated profits at P850.000. O Credit to Share premium at P425.000. O Debit to Accumulated profits at P425.00. O Credit to Share premium at P850.000.