Question Answer & Explanation Related Questions Related Courses Question Answered step-by-step Can you show the solution and some explanation, Thank you! 1. Image transcription text The shareholders' equity of ADAM Co on January 1, 2020 appears as follows: 12% Preference share, P200 par, 20,000 shares authorized, 1,400,000 7,000 shares issued and outstanding Share premium preference 175,000 Ordinary shares, P100 par, 180,000 shares authorized, 3,500,000 35,000 shares issued and outstanding Share Premium Ordinary 1,750,000 Retained Earnings 4,500,000 During 2020, the following transactions occurred: Jan. 2 : Issued 20,000 ordinary shares for P180 per share Feb. 7 : Purchase 6,000 ordinary shares for the treasury at P200 per share Feb. 15 : Shareholders donated 5,000 entity's own ordinary shares to the corporation May 14 : Sold half of the treasury shares acquired last February 7 for P220 per share. June 27 : Sold the donated shares at P220 per share Aug 28 : Issued 4,000 preference shares to acquire special equipment with a fair value of P1,440,000 Sep 24 : Received subscription to 18,000 ordinary shares at P250 per share Sep 25 : Received cash payment for each subscriber for 40%% of the ordinary shares subscription price Nov 24 : Received full payment of the 10,000 shares on Sep 24 and Sep 25 Dec 31 :Close net income of P1,000,000 from the income summary account to retained earnings. How much is the total share premium on December 31,20207

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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Question Answer & Explanation Related Questions Related Courses Question Answered step-by-step Can you show the solution and some explanation, Thank you! 1. Image transcription text The shareholders' equity of ADAM Co on January 1, 2020 appears as follows: 12% Preference share, P200 par, 20,000 shares authorized, 1,400,000 7,000 shares issued and outstanding Share premium preference 175,000 Ordinary shares, P100 par, 180,000 shares authorized, 3,500,000 35,000 shares issued and outstanding Share Premium Ordinary 1,750,000 Retained Earnings 4,500,000 During 2020, the following transactions occurred: Jan. 2 : Issued 20,000 ordinary shares for P180 per share Feb. 7 : Purchase 6,000 ordinary shares for the treasury at P200 per share Feb. 15 : Shareholders donated 5,000 entity's own ordinary shares to the corporation May 14 : Sold half of the treasury shares acquired last February 7 for P220 per share. June 27 : Sold the donated shares at P220 per share Aug 28 : Issued 4,000 preference shares to acquire special equipment with a fair value of P1,440,000 Sep 24 : Received subscription to 18,000 ordinary shares at P250 per share Sep 25 : Received cash payment for each subscriber for 40%% of the ordinary shares subscription price Nov 24 : Received full payment of the 10,000 shares on Sep 24 and Sep 25 Dec 31 :Close net income of P1,000,000 from the income summary account to retained earnings. How much is the total share premium on December 31,20207

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