18 The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows:Preference share capital,20,000 shares, P20 parP 400,000Share premium - preference160,000Ordinary share capital,50,000 shares, P80 par4,000,000Share premium - ordinary600,000Retained earnings360,000During the year ending Deccmber 31, 2020, the following summarizes the transactions affecting the shareholders' equityApril 30 - 1.000 prcference shares werc retired at P25 per share.June 15 - 2,000 treasury sharcs. ordinary. were purchascd at P85 per shareJune 30 - A two-for-onc ordinary share split was declared.July 31 8000 trcasury sharcs wcre rcissLicd at P50 pcr share.Dec. 31Profit for 2020 was P300.000. What was thc total share premium on Dccember 31, 2020?O P755,000O P766.000O P761.000O P760.000

Solution: Total share premium on Dec 31, 2020 = Share premium - Preference + Share premium -…

The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows: Preference share capital, P 400,000 20,000 shares, P20 par Share premium - preference 160,000 Ordinary share capital, 50,000 shares, P80 par 4,000,000 Share premium - ordinary 600,000 Retained earnings 360,000 During the year ending December 31, 2020, the following summarizes the transactions affecting the sh April 30 1.000 preference shares were rctired at P25 per share. June 15 - 2,000 treasury shares. ordinary. were purchased at P85 per share June 30 - A two-for-one ordinary share split was declared. July 31- 800 treasury sharcs were reissucd at P50 per share, Dec. 31 Profit for 2020 was P300.000.

The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows: Preference share capital, P 400,000 20,000 shares, P20 par Share premium - preference 160,000 Ordinary share capital, 50,000 shares, P80 par 4,000,000 Share premium - ordinary 600,000 Retained earnings 360,000 During the year ending December 31, 2020, the following summarizes the transactions affecting the sh April 30 1.000 preference shares were rctired at P25 per share. June 15 - 2,000 treasury shares. ordinary. were purchased at P85 per share June 30 - A two-for-one ordinary share split was declared. July 31- 800 treasury sharcs were reissucd at P50 per share, Dec. 31 Profit for 2020 was P300.000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 14P: Gray Company lists the following shareholders equity items on its December 31, 2018, balance sheet:...

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