The Millenium Company had I00,000 shares of Ordinary Share Capital on December 31,2019. Its statement of financial position on that date showed the following shareholder's equity balances: Ordinary Share Capital, P 10 par P 1,000,000 Share premium 300,000 Retained Earnings 900,000 The following treasury share transactions took place in 2020: 1.) Purchased 10,000 ordinary shares at P 14 per share. 2.) Sold 4,000 of the treasury shares above at P 15 per share. 3.) Sold 5,000 of the treasury shares above at P 13 per share. 4.) Retired the remaining treasury shares. REQUIRED: a) Prepare the entries in the books of Millenium Company to record the foregoing transactions. b) Determine the total shareholder's equity at December 31,2020, assuming that profit for the year was P 280,000 and cash dividends declared were P 200,000.
The Millenium Company had I00,000 shares of Ordinary Share Capital on December 31,2019. Its statement of financial position on that date showed the following shareholder's equity balances: Ordinary Share Capital, P 10 par P 1,000,000 Share premium 300,000 Retained Earnings 900,000 The following treasury share transactions took place in 2020: 1.) Purchased 10,000 ordinary shares at P 14 per share. 2.) Sold 4,000 of the treasury shares above at P 15 per share. 3.) Sold 5,000 of the treasury shares above at P 13 per share. 4.) Retired the remaining treasury shares. REQUIRED: a) Prepare the entries in the books of Millenium Company to record the foregoing transactions. b) Determine the total shareholder's equity at December 31,2020, assuming that profit for the year was P 280,000 and cash dividends declared were P 200,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:EXERCISE 4
The Millenium Company had 100,000 shares of Ordinary Share Capital on December 31,2019. Its statement of
financial position on that date showed the following shareholder's equity balances:
Ordinary Share Capital, P 10 par
P 1,000,000
Share premium
300,000
Retained Earnings
900,000
The following treasury share transactions took place in 2020:
1.) Purchased 10,000 ordinary shares at P 14 per share.
2.) Sold 4,000 of the treasury shares above at P 15 per share.
3.) Sold 5,000 of the treasury shares above at P 13 per share.
4.) Retired the remaining treasury shares.
REQUIRED:
a) Prepare the entries in the books of Millenium Company to record the foregoing transactions.
b) Determine the total shareholder's equity at December 31,2020, assuming that profit for the year was P
280,000 and cash dividends declared were P 200,000.
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