Pain Hub Corporation reported the following amount in the shareholders’ equity section of its December 31, 2023, balance sheet:             10% Preference shares, P10 par (100,000 shares authorized, 40,000 shares issued)               P   400,000           Ordinary shares, P5 par (50,000 shares authorized, 20,000 shares issued)                                   100,000           Share premium                                                                                                                           190,000           Retained earnings                                                                                                                      1,200,000   The following transactions occurred during 2024:             February 1 – Purchase 4,000 shares of its own outstanding ordinary shares for P80,000.             March 1 – Ordinary shares were split 2 for 1.             April 30 – Reissued 2,000 treasury ordinary shares for cash at P15 per share.                                   June 30 – Issued 10,000 shares of preference shares at P15 per share.             August 1 – Purchased 3,000 preference shares from June 30 issuance at P12 per share.             September 1 – Declared a 10% stock dividend on the outstanding ordinary shares when the stock is selling for P6                          per share dividend on September 30.             December 1 – Declared the annual dividend on preference shares and the P2.00 per share dividend on ordinary                           shares. These dividends are payable in 2025.             December 31 – Registered a net income for 2024 at P800.000   Required: Determine the adjusted balances of the following accounts: Share premium   Group of answer choices 240,000 250,000 251,900 261,900

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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 Use the following information for the next four (4) questions:

Pain Hub Corporation reported the following amount in the shareholders’ equity section of its December 31, 2023, balance sheet:

 

          10% Preference shares, P10 par (100,000 shares authorized, 40,000 shares issued)               P   400,000

          Ordinary shares, P5 par (50,000 shares authorized, 20,000 shares issued)                                   100,000

          Share premium                                                                                                                           190,000

          Retained earnings                                                                                                                      1,200,000

 

The following transactions occurred during 2024:

 

          February 1 – Purchase 4,000 shares of its own outstanding ordinary shares for P80,000.

 

          March 1 – Ordinary shares were split 2 for 1.

 

          April 30 – Reissued 2,000 treasury ordinary shares for cash at P15 per share.

                       

          June 30 – Issued 10,000 shares of preference shares at P15 per share.

 

          August 1 – Purchased 3,000 preference shares from June 30 issuance at P12 per share.

 

          September 1 – Declared a 10% stock dividend on the outstanding ordinary shares when the stock is selling for P6                          per share dividend on September 30.

 

          December 1 – Declared the annual dividend on preference shares and the P2.00 per share dividend on ordinary                           shares. These dividends are payable in 2025.

 

          December 31 – Registered a net income for 2024 at P800.000

 

Required: Determine the adjusted balances of the following accounts:

  • Share premium

 

Group of answer choices
240,000
250,000
251,900
261,900
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