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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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