Under the cost method of accounting for treasury stock, the reissuance resulted in a credit to a. Gain on sale of investments of P70,000 b. Ordinary shares of P100,000 c. Retained earnings of P70,000 d. Share premium of P70,000
Under the cost method of accounting for treasury stock, the reissuance resulted in a credit to a. Gain on sale of investments of P70,000 b. Ordinary shares of P100,000 c. Retained earnings of P70,000 d. Share premium of P70,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ASL Corporation holds 5,000 shares of its P10 par value ordinary shares as treasury stock reacquired last month for P80,000. On December 2016, F reissued all 5,000 shares for P120,000. Under the cost method of accounting for treasury stock, the reissuance resulted in a credit to
a. Gain on sale of investments of P70,000
b. Ordinary shares of P100,000
c. Retained earnings of P70,000
d. Share premium of P70,000
S1 - A shareholder of a corporation may be a natural person or a juridical person. S2 - Shareholders are those who own and issued with stock certificates, but not those subscribers with partially unpaid subscription.
a. Both statements are true
b. Both statements are false
c. One statement is true, and the other one is false
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