The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as follows: Ordinary shares, P100 par; 50,000 shares authorized; 25,000 shares issued, P2,500,000 Share premium, P1,500,000 Accumulated profits, P1,000,000 Treasury shares, 2,000 shares at cost, P360,000 On January 10, 2021 Image reacquired additional 2,000 shares from stockholders at P225 On February 5, 2021, Image sold 2,500 treasury shares on the open market at P200 per share. On March 15, 2021, Image retired 1,000 treasury shares of the remaining treasury shares, the entry to record the retirement shall include: Group of answer choices Debit to accumulated profits of P27,500 Debit to accumulated profits of P37,500 Debit to accumulated profits of P60,000 Debit to accumulated profits of P10,000
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Ordinary shares, P100 par; 50,000 shares authorized; 25,000 shares issued, P2,500,000
Share premium, P1,500,000
Treasury shares, 2,000 shares at cost, P360,000
On January 10, 2021 Image reacquired additional 2,000 shares from stockholders at P225
On February 5, 2021, Image sold 2,500 treasury shares on the open market at P200 per share.
On March 15, 2021, Image retired 1,000 treasury shares of the remaining treasury shares, the entry to record the retirement shall include:
Group of answer choices
Debit to accumulated profits of P27,500
Debit to accumulated profits of P37,500
Debit to accumulated profits of P60,000
Debit to accumulated profits of P10,000
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