The following data were presented for WENG company on Jan. 1, 2018: Ordinary share, par value 20, authorized 400,000 shares issued and outstanding, 240,000 shares Share premium Retained Earnings 4,800,000 960,000 3,080,000 The company uses the cost method of accounting for treasury shares and the following transactions took place: The entity acquired 4,000 shares of its shares for 140,000; sold 2,400 treasury shares at 40 per share, then retired the remaining treasury shares. What is the amount of the retained earnings after the retirement of treasury shares?
The following data were presented for WENG company on Jan. 1, 2018: Ordinary share, par value 20, authorized 400,000 shares issued and outstanding, 240,000 shares Share premium Retained Earnings 4,800,000 960,000 3,080,000 The company uses the cost method of accounting for treasury shares and the following transactions took place: The entity acquired 4,000 shares of its shares for 140,000; sold 2,400 treasury shares at 40 per share, then retired the remaining treasury shares. What is the amount of the retained earnings after the retirement of treasury shares?
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 7EB: Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the...
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![The following data were presented for WENG company on Jan. 1, 2018:
Ordinary share, par value 20, authorized 400,000 shares
issued and outstanding, 240,000 shares
4,800,000
Share premium
Retained Earnings
960,000
3,080,000
The company uses the cost method of accounting for treasury shares and the following
transactions took place: The entity acquired 4,000 shares of its shares for 140,000; sold
2,400 treasury shares at 40 per share, then retired the remaining treasury shares.
What is the amount of the retained earnings after the retirement of treasury shares?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3437507-b89f-4847-9b3d-fa415100016b%2F7f4dcd52-1fa6-4afb-8287-c1f43a530e2b%2Fivuuzjc_processed.png&w=3840&q=75)
Transcribed Image Text:The following data were presented for WENG company on Jan. 1, 2018:
Ordinary share, par value 20, authorized 400,000 shares
issued and outstanding, 240,000 shares
4,800,000
Share premium
Retained Earnings
960,000
3,080,000
The company uses the cost method of accounting for treasury shares and the following
transactions took place: The entity acquired 4,000 shares of its shares for 140,000; sold
2,400 treasury shares at 40 per share, then retired the remaining treasury shares.
What is the amount of the retained earnings after the retirement of treasury shares?
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