19. The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as follows:   Ordinary shares, P100 par; 50,000 shares authorized; 25,000 shares issued, P2,500,000 Share premium, P1,500,000 Accumulated profits, P1,000,000 Treasury shares, 2,000 shares at cost, P360,000   On January 10, 2021 Image reacquired additional 2,000 shares from stockholders at P225   On February 5, 2021, Image sold 2,500 treasury shares on the open market at P200 per share. The entry to record the sale on the books of Image should include: Group of answer choices Credit to Share premium at P50,000. Debit to accumulate profits at P6,250. Credit to Share premium at P27,50

Q: What is the correct answer?

A: The treasury stock are the own shares of the company that are repurchased from the shareholders of…

Q: The shareholders' equity of Brenalyn Corporation at January 1, 2021 appears below: 12% Preference…

A: The ordinary shares of a company can be issued at par, at discount, or at a premium. When an…

Q: The equity accounts of Marvell Ltd. on January 1, 2020, were as follows. Share Capital Preference…

A: The purpose of making the Balance Sheet or the Statement of Financial Position is to present the…

Q: 32 On January 1, 2020, Belmont Corporation had 50,000 shares of $10 par value common stock issued…

A: Cash paid for purchase of treasury stock = 2000×$18 =$36000

Q: The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…

A: Total cost of Treasury stock = P360,000+(2000*225)                                              =…

Q: the shareholders’ equity section of Pampanga Corporation’s statement of financial position as of…

A: The amount of retained earnings is that portion of the company's equity that can be utilized for the…

Q: The stockholders' equity account balances of Image Corporation as of December 31, 2020 are as…

A: Total cost of Treasury stock = P360,000+(2000*225)                                              =…

Q: Presented below are the balances taken from the books of Abacus Corporation on January 1, 2020:…

A: You have posted more than one unrelated questions, so as per our policy only first question is…

Q: The shareholders’ equity section of Pottery Corporation’s statement of financial position as of…

A: Stockholder's equity is the amount belongs to the stockholder's of the business. It is the sum of…

Q: 31. Jones Company reported the following shareholders’ equity on January 1, 2020: • Share…

A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…

Q: The capital structure of THOR Company on December 31, 2020, is as follows: • 12% Preference shares,…

A: No. of shares issued from donated shares = No. of donated shares  x 1/2 = 20000 shares x 1/2 =…

Q: The stockholders' equity account balances of Image Corporation as of December 31, 2020 are as…

A: Total cost of Treasury stock = P360,000+(2000*225)                                              =…

Q: The shareholders’ equity section of Haemul Pajeon Co. as of Dec. 31, 2019, contained the ff.…

A: No. of shares issued under bonus issue = No. of shares outstanding x bonus rate Amount charged to…

Q: On January 1, 2021, Lakad purchase and retire 100,000 shares of its shares for P1,800,000.…

A: Solution Concept Treasury stock is the stock that is bough back by the company When the treasury…

Q: The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…

A: Journal entry - Recording the business transactions in accounting books for the first time. The…

Q: At December 31, 2020 Paid-in Capital Common Stock, $9 par value, 3,000,000 shares authorized,…

A: The shareholders equity consists of the shares issued by the company.

Q: The capital structure of THOR Company on December 31, 2020, is as follows: 12% Preference shares,…

A: Formula: Total dividends = Preferred dividends + Ordinary dividends

Q: The capital structure of THOR Company on December 31, 2020, is as follows: • 12% Preference shares,…

A: No. of shares issued from donated shares = No. of donated shares  x 1/2 = 20000 shares x 1/2 =…

Q: The shareholders' equity of Core Technologies Company on June 30, 2020, included the following:…

A: For recording stock dividend market price on the date of declaration is considered. Stock dividend =…

Q: Ihe shareholders' equity of the ABA Company on January 1, 2020 is presented below: Share capital,…

A: Shareholder’s equity is the difference between total assets and total liabilities. It refers to the…

Q: Jones Company reported the following shareholders’ equity on January 1, 2020: • Share capital, P5…

A: The retained earnings are the part of earnings kept by business for future purpose or dividend…

Q: On December 31, 2020 and 2019, Bucks Corporation had 105,000 Ordinary Shares issued, 5,000 shares in…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

Q: Jones Company reported the following shareholders’ equity on January 1, 2020: • Share capital, P5…

A: The share premium is the excess value received as compared to par value of shares.

Q: On December 31, 2020, Rebel Corporation's balance sheet reported the following.             Common…

A: Equity shares are the shares issued by the company in the public and such shareholders are treated…

Q: The stockholders' equity account balances of Image Corporation as of December 31, 2020 are as…

A: Share premium on shares sold = (No. of shares sold x  sale price per share) - Cost of shares sold =…

Q: What should be reported as total shareholders’ equity on December 31, 2020?

A: Total Shareholders' equity computation includes: a) Outstanding shares  b) additional paid up…

Q: McAllister Co.'s shareholders' equity on December 31, 2020 shows the following accounts and balances…

A:

Q: On January 1, 2020, ABC Company reported the following shareholders’ equity Share capital, 250,000…

A: The dividend is paid to the shareholders from the retained earnings of the business. The retained…

Q: d: Jan 5: Issuance of 6,000 shares at PI 10 per share for cash. Stock issue costs that were paid by…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…

A: Total cost of Treasury stock = P360,000+(2000*225)                                              =…

Q: Jones Company reported the following shareholders’ equity on January 1, 2020: • Share capital, P5…

A: The retained earnings are the balance of the net income retained for future requirement such as…

Q: On January 01, 2021, Acoba Corporation provided you the following information: Ordinary share…

A: Treasury shares means the share which has been buy back by the company . It will be shown as…

Q: The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…

A: Total cost of Treasury stock = P360,000+(2000*225)                                              =…

Q: Complete the below table to calculate the stock dividend. Prepare the journal entries to record the…

A: A stock dividend is a dividend payment to shareholders that is made in shares rather than as cash.…

Q: n January 01, 2021, Pagaduan Corporation provided you the following information: Ordinary share…

A: Solution: Treasury shares are those shares which are purchased by a corporation of its own shares.…

Q: The shareholders' equity of the ABA Company on January 1, 2020 is presented below: Share capital,…

A: It shows the sum of the amount invested by shareholders and retained earnings. It is divided into…

Q: he stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…

A: Journal entry is the process of documenting commercial transactions for the first time in the books…

Q: Prepare the Statement of Shareholders’ Equity for ABC CORPORATION for the year ended December 31,…

A: It is the statement of a company issues as part of the company's balance sheet. This consists of the…

Q: Using the information provided below, what is the share premium balance on December 31, 2021? The…

A: Share premium is the difference between the total amount of money received for the shares issued and…

Q: The shareholders’ equity section of the statement of financial position of LW Corporation showed the…

A: Bonus issue is free offer of additional shares to existing shareholders.  During 2021, the…

Q: The shareholders’ equity section of Pottery Corporation’s statement of financial position as of…

A:

Q: The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows: Preference share…

A: Effect of April 30=Number of shares×Per share value-Par value=1,000×P 25-P20=5,000

Q: 12. On Jan. 1, 2019, Giron Corp. reported the following on its shareholders' equity section:…

A: Treasury Stock:- These are also known as treasury shares which get buy back from the shareholders by…

Q: The capital accounts of Kamprad, Inc. on December 31, 2019, were as follows: Preference…

A: 1. Share Premium - Share Premium is the amount received by the company over and above the par value…

Q: The following shareholders’ equity accounts are included in the statement of financial position of…

A: Stockholder's Equity :-Stockholder's Equity includes the amount contributed by shareholders issued…

Q: 21. Israel Company’s stockholders’ equity account balances at December 31, 2019, were as follows: •…

A: Treasury stock are the stock repurchased by the company from the stockholders but not retired It…

Q: The stockholders equity section of K Pop Corp balance sheet at December 31, 2019 was as follows:…

A:

Q: The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…

A:

Q: The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as…

A: Share premium on shares sold = (No. of shares sold x  sale price per share) - Cost of shares sold =…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.