The analysis of shareholder’s equity of AAA Company at January 1, 2020 showed the following: Ordinary shares, par value P20, authorized 200,000 shares, issued and outstanding , 120,000 shares – P2,400,000 Share premium – P480,000 Retained Earnings – P1,540,000 The company uses the cost method of accounting for treasury shares and the following transactions took place: Acquired 2,000 shares of its shares for P70,000 Sold 1,200 treasury shares at P40 per share 2 for 1 stock split Retired the remaining treasury shares Retained Earnings –? Shareholder’s Equity –?
The analysis of shareholder’s equity of AAA Company at January 1, 2020 showed the following: Ordinary shares, par value P20, authorized 200,000 shares, issued and outstanding , 120,000 shares – P2,400,000 Share premium – P480,000 Retained Earnings – P1,540,000 The company uses the cost method of accounting for treasury shares and the following transactions took place: Acquired 2,000 shares of its shares for P70,000 Sold 1,200 treasury shares at P40 per share 2 for 1 stock split Retired the remaining treasury shares Retained Earnings –? Shareholder’s Equity –?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
19.2
The analysis of shareholder’s equity of AAA Company at January 1, 2020 showed the following:
Ordinary shares, par value P20, authorized 200,000 shares, issued and outstanding , 120,000 shares – P2,400,000
Share premium – P480,000
The company uses the cost method of accounting for treasury shares and the following transactions took place:
Acquired 2,000 shares of its shares for P70,000
Sold 1,200 treasury shares at P40 per share
2 for 1 stock split
Retired the remaining treasury shares
Retained Earnings –?
Shareholder’s Equity –?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education