Problem 3 National Supply's shareholders' equity included the following accounts at December 31, 2022: Ordinary share capital, P1 par Share premium-ordinary Retained earnings P 6,000,000 30,000,000 20,000,000 Each share was originally issued at an average price of P6 per share. National Supply reacquired its ordinary shares in two separate transactions and later sold shares. February 15 February 17 Reacquired 300,000 shares at P8 per share Reacquired 300,000 shares at P5.50 per share November 9 Sold 200,000 shares at P7 per share (assume FIFO). Prepare the entries for each of the transactions under each of two separate assumptions: 1. The shares are retired. 2. The shares are accounted for as treasury shares,

Problem 3 National Supply's shareholders' equity included the following accounts at December 31, 2022: Ordinary share capital, P1 par Share premium-ordinary Retained earnings P 6,000,000 30,000,000 20,000,000 Each share was originally issued at an average price of P6 per share. National Supply reacquired its ordinary shares in two separate transactions and later sold shares. February 15 February 17 Reacquired 300,000 shares at P8 per share Reacquired 300,000 shares at P5.50 per share November 9 Sold 200,000 shares at P7 per share (assume FIFO). Prepare the entries for each of the transactions under each of two separate assumptions: 1. The shares are retired. 2. The shares are accounted for as treasury shares,

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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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Problem 3
National Supply's shareholders' equity included the following accounts at December 31, 2022:
Ordinary share capital, P1 par
Share premium-ordinary
Retained earnings
P 6,000,000
30,000,000
20,000,000
Each share was originally issued at an average price of P6 per share.
National Supply reacquired its ordinary shares in two separate transactions and later sold shares.
February 15
February 17
Reacquired 300,000 shares at P8 per share
Reacquired 300,000 shares at P5.50 per share
November 9
Sold 200,000 shares at P7 per share (assume FIFO).
Prepare the entries for each of the transactions under each of two separate assumptions:
1. The shares are retired.
2. The shares are accounted for as treasury shares,

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