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PLEASE PROVIDE COMPUTATION! 19. The balance in the share premium account after the quasi-reorganization on July 1, 2018, should be a. P750,000 c. P500,000 b. P2,000,000 d. P0

PLEASE PROVIDE COMPUTATION! 19. The balance in the share premium account after the quasi-reorganization on July 1, 2018, should be a. P750,000 c. P500,000 b. P2,000,000 d. P0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PLEASE PROVIDE COMPUTATION!

19. The balance in the share premium account after the quasi-reorganization on July 1, 2018, should be
a. P750,000 c. P500,000
b. P2,000,000 d. P0

ITEMS FOR 18 TO 20 ARE BASED ON THE FOLLOWING INFORMATION: YEMEN CORPORATION has incurred losses from operations for many years. At the recommendation of the newly hired president, the board of directors voted to implement a quasi-reorganization, subject to shareholders' and creditors' approval. Immediately, príor to the quasi-reorganization, on June 30, 2018, Yemen's statement of financial position was as follows: Assets Current assets P1,375,000 Property, plant, and equipment (net) Other noncurrent assets 3,375,000 500,000 P5.250.000 Total assets Liabilities & Shareholders' Equity Total liabilities P1,500,000 Ordinary shares, P10 par Share premium Retained earnings Total liabilities & shareholders' equity 4,000,000 750,000 (1,000,000) 5,250,000 The shareholders and creditors approved the quasi-reorganization effective July 1, 2018, to be accomplished by a reduction in property, plant, and equipment (net) of P875,000, a reduction and a reduction in par value from P10 to P5. other noncurrent assets of P375,000,
Transcribed Image Text:ITEMS FOR 18 TO 20 ARE BASED ON THE FOLLOWING INFORMATION: YEMEN CORPORATION has incurred losses from operations for many years. At the recommendation of the newly hired president, the board of directors voted to implement a quasi-reorganization, subject to shareholders' and creditors' approval. Immediately, príor to the quasi-reorganization, on June 30, 2018, Yemen's statement of financial position was as follows: Assets Current assets P1,375,000 Property, plant, and equipment (net) Other noncurrent assets 3,375,000 500,000 P5.250.000 Total assets Liabilities & Shareholders' Equity Total liabilities P1,500,000 Ordinary shares, P10 par Share premium Retained earnings Total liabilities & shareholders' equity 4,000,000 750,000 (1,000,000) 5,250,000 The shareholders and creditors approved the quasi-reorganization effective July 1, 2018, to be accomplished by a reduction in property, plant, and equipment (net) of P875,000, a reduction and a reduction in par value from P10 to P5. other noncurrent assets of P375,000,
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