#24 At the beginning of current year, AILEEN company was authorized to issue share capital of 120,000 shares with P50 par value. The entity had the following share capital transactions during the year: Jan 1 Sold 96,000 shares at P60 per share May 1 Reacquired 4,000 treasury shares at P65 per share. July 1 Approved a share split of 5 for 1. Oct. 31 Declared and issued a 10% share dividend when the market value of a share is P25. Dec. 31 Reissued all of the treasury shares at P30. Dec. 31 Net income for the year was P3,600,000. What total amount should be reported as share premium? 2,052,000 pls provide correct solution for the given answer
#24 At the beginning of current year, AILEEN company was authorized to issue share capital of 120,000 shares with P50 par value. The entity had the following share capital transactions during the year: Jan 1 Sold 96,000 shares at P60 per share May 1 Reacquired 4,000 treasury shares at P65 per share. July 1 Approved a share split of 5 for 1. Oct. 31 Declared and issued a 10% share dividend when the market value of a share is P25. Dec. 31 Reissued all of the treasury shares at P30. Dec. 31 Net income for the year was P3,600,000. What total amount should be reported as share premium? 2,052,000 pls provide correct solution for the given answer
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
Problem 13E
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Question
#24
At the beginning of current year, AILEEN company was authorized to issue share capital of
120,000 shares with P50 par value. The entity had the following share capital transactions
during the year:
Jan 1 Sold 96,000 shares at P60 per share
May 1 Reacquired 4,000 treasury shares at P65 per share.
July 1 Approved a share split of 5 for 1.
Oct. 31 Declared and issued a 10% share dividend when the market value of a share is
P25.
Dec. 31 Reissued all of the treasury shares at P30.
Dec. 31 Net income for the year was P3,600,000.
What total amount should be reported as share premium? 2,052,000 pls provide correct solution for the given answer
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