The capital accounts of Kay, Inc. on December 31, 2015 were as follows: Preference Share Capital, P20 par, 20,000 shares P400,000 Share Premium – Preference 160,000 Ordinary Share Capital, P80 par, 50,000 shares 4,000,000 Share Premium – Ordinary 600,000 Retained Earnings 360,000 During the year ending December 31, 2016, the following summarizes the transactions affecting the shareholders’ equity: April 30- 1,000 preference shares were retired at P25 per share. June 15- 2,000 treasury shares were purchased at P85 per share. June 30- A 2-for-1 share split of the company’s ordinary share was declared. July 31- 800 treasury shares were reissued at P50 per share. Dec. 31- Profit for 2015 was P900,000. a. What was the total shareholders’ equity on December 31, 2016? A. P6,294,000 B. P6,270,000 C. P6,265,000 D. P5,520,000 b. How much was the remaining cost of the treasury shares on December 31, 2016? A. P51,000 B. P96,000 C. P102,000 D. P136,000
The capital accounts of Kay, Inc. on December 31, 2015 were as follows:
Share Premium – Preference 160,000
Ordinary Share Capital, P80 par, 50,000 shares 4,000,000
Share Premium – Ordinary 600,000
During the year ending December 31, 2016, the following summarizes the transactions affecting the shareholders’ equity:
April 30- 1,000 preference shares were retired at P25 per share.
June 15- 2,000 treasury shares were purchased at P85 per share.
June 30- A 2-for-1 share split of the company’s ordinary share was declared.
July 31- 800 treasury shares were reissued at P50 per share.
Dec. 31- Profit for 2015 was P900,000.
a. What was the total shareholders’ equity on December 31, 2016?
A. P6,294,000
B. P6,270,000
C. P6,265,000
D. P5,520,000
b. How much was the remaining cost of the treasury shares on December 31, 2016?
A. P51,000
B. P96,000
C. P102,000
D. P136,000
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