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Rayan Corporation was organized on January 1, 2020, with an authorization of 1,200,000 ordinary shares with a par value of $7 per share. During 2020, the corporation had the :following capital transactions January 5 issued 775,000 shares @ $10 per share July 28 purchased 80,000 shares @ $11 per share December 31 sold the 80,000 shares held in treasury @ $17 per share Percy used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of share ?premium as of December 31, 2020

Rayan Corporation was organized on January 1, 2020, with an authorization of 1,200,000 ordinary shares with a par value of $7 per share. During 2020, the corporation had the :following capital transactions January 5 issued 775,000 shares @ $10 per share July 28 purchased 80,000 shares @ $11 per share December 31 sold the 80,000 shares held in treasury @ $17 per share Percy used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of share ?premium as of December 31, 2020

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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Rayan Corporation was organized on January .1 1, 2020, with an authorization of 1,200,000 ordinary shares with a par value of $7 per share. During 2020, the corporation had the :following capital transactions January 5 issued 775,000 shares @ $10 per share July 28 purchased 80,000 shares @ $11 per share December 31 sold the 80,000 shares held in treasury @ $17 per share Percy used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of share ?premium as of December 31, 2020
Transcribed Image Text:Rayan Corporation was organized on January .1 1, 2020, with an authorization of 1,200,000 ordinary shares with a par value of $7 per share. During 2020, the corporation had the :following capital transactions January 5 issued 775,000 shares @ $10 per share July 28 purchased 80,000 shares @ $11 per share December 31 sold the 80,000 shares held in treasury @ $17 per share Percy used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of share ?premium as of December 31, 2020
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