Problem 6: Treasury Shares year 20x1: Valientes Corporation reported the shareholders. Equity at the beginning of the Ordinary share, P10 par, outstanding 225,000 shares Share Premium Retained Earnings 2,250,000 1,500,000 2,000,000 During the year, the entity had the following treasury shares transactions: Acquired 10,000 treasury shares for P500,000. Sold 5,000 treasury shares at P60 per share - Sold 2,000 treasury shares at P45 per share. Required: a. Prepare the journal entries b. Prepare the shareholders' equity at the end of the year

Financial And Managerial Accounting
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Author:WARREN, Carl S.
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Chapter12: Corporations: Organization, Stock Transactions, And Dividends
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Problem 6: Treasury Shares

year 20x1:

Valientes Corporation reported the shareholders. Equity at the beginning of the

Ordinary share, P10 par, outstanding 225,000 shares Share Premium Retained Earnings

2,250,000

1,500,000

2,000,000

During the year, the entity had the following treasury shares transactions:

Acquired 10,000 treasury shares for P500,000.

Sold 5,000 treasury shares at P60 per share

- Sold 2,000 treasury shares at P45 per share.

Required:

a.

Prepare the journal entries

b. Prepare the shareholders' equity at the end of the year

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