Problem 21-1 (ACP) 1 Aroma Company reported the following shareholders' equity: Ordinary share capital, 50,000 shares, P100 par Share premium Retained earnings 5,000,000 200,000 2,000,000 Subsequently, the following transactions, among others occurred: a. Treasury shares of 5,000 were acquired at P160 per share. b. Assuming the treasury shares were reissued for P1,000,000. c. Assuming the treasury shares were reissued for P700,000. Required: 1. Prepare journal entries to record the transactions. 2. Prepare journal entry to record the retirement of the treasury shares, assuming the treasury shares are not reissued. The original issue price of treasury shares was P104 per share.

Problem 21-1 (ACP) 1 Aroma Company reported the following shareholders' equity: Ordinary share capital, 50,000 shares, P100 par Share premium Retained earnings 5,000,000 200,000 2,000,000 Subsequently, the following transactions, among others occurred: a. Treasury shares of 5,000 were acquired at P160 per share. b. Assuming the treasury shares were reissued for P1,000,000. c. Assuming the treasury shares were reissued for P700,000. Required: 1. Prepare journal entries to record the transactions. 2. Prepare journal entry to record the retirement of the treasury shares, assuming the treasury shares are not reissued. The original issue price of treasury shares was P104 per share.

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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PROBLEMS
Problem 21-1 (ACP)
1 Aroma Company reported the following shareholders' equity:
Ordinary share capital, 50,000 shares, P100 par
Share premium
Retained earnings
5,000,000
200,000
2,000,000
Subsequently, the following transactions, among others
occurred:
a. Treasury shares of 5,000 were acquired at P160 per share.
b. Assuming the treasury shares were reissued for
P1,000,000.
c. Assuming the treasury shares were reissued for P700,000.
Required:
1. Prepare journal entries to record the transactions.
2. Prepare journal entry to record the retirement of the
treasury shares, assuming the treasury shares are not
reissued. The original issue price of treasury shares was
P104 per share.
Problem 21-2 (ACP)
the following issues of share capital:
200,000 shares at P20
250,000 shares at P25
4,000,000
6,250,000
per share.
nsactions

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