1. ABC Company has the following balances in its’ equity account as of January 1, 2021: Ordinary shares, P 5 par P 500,000 Share premium – ordinary 2,000,000 Retained earnings 7,000,000 On March 28, the corporation purchased 10,000 shares as treasury stock at P15 per share. On April 10, it sold 4,000 of the treasury shares at P14 per share. On July 5, it sold 2,000 shares at P16 per share. Required: a. Determine the number of shares issued and outstanding on: Jan 1 Mar 31 June 30 Sep 30 b. Prepare the journal entries for the above transactions

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...
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1. ABC Company has the following balances in its’ equity account as of January 1, 2021: Ordinary shares, P 5 par P 500,000 Share premium – ordinary 2,000,000 Retained earnings 7,000,000 On March 28, the corporation purchased 10,000 shares as treasury stock at P15 per share. On April 10, it sold 4,000 of the treasury shares at P14 per share. On July 5, it sold 2,000 shares at P16 per share. Required: a. Determine the number of shares issued and outstanding on: Jan 1 Mar 31 June 30 Sep 30 b. Prepare the journal entries for the above transactions
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