Answered: 1. Garnett Company was organized on…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

See similar textbooks

Related questions

Question

1. Garnett Company was organized on January 1, 2020 with authorized capital of 100,000shares of P200 par value. On January 10, the company issued 25,000 shares atP220 per share. On March 25, the company issued 1,000 shares for legal services when the fair value was P240 per share. On September 30, 5,000 shares were issued for a tract of land when the fair value was P260 per share. What amount should be reported for share premium?Required to answer. Single choice.

a. P800,000

b. P840,000

c. P540,000

d. P500,000

2. Murphy Company reported the following shareholders' equity on January 1, 2020:
    Preference share capital, 100,000shares, P10 par - P1,000,000
    Ordinary share capital, 500,000shares, P10 par - P5,000,000
    Share premium - Preference   - P50,000
    Share premium - Ordinary - P 200,000
    Retained earnings     - P100,000
During the current year, the following transactions were completed:
    Retirement of 5,000 preference shares at P11 per share.
    Purchase of 5,000 ordinary shares of treasury at P12 per share.
    Share split, ordinary share, 2-for-1.
    Reissue of 2,000 shares of treasury at P8 per share.
    Net income for the year, P300,000.
What is the total shareholders’ equity on December 31, 2020?

a. P6,556,000

b. P6,551,000

c. P6,251,000

d. P6,350,000

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions