At December 31,2018, ABC Company had 20,000 shares of P 20 par value treasury shares that were acquired in 2018 at P 24 per share. In May 1,2019, additional 5,000 shares were reacquired and immediately retired at P 26 each. These shares were originally issued at P 23. On June 1,2019, ABC issued 15,000 of the treasury shares at P 20 each. The cost method is used to record the treasury shares transaction. At December 31,2019, what amount should ABC show in its notes to financial statements as a restriction of retained earnings as a result of its treasury share transactions? A. P 480,000 B. P 10,000 C. P 130,000 D. P 120,000
At December 31,2018, ABC Company had 20,000 shares of P 20 par value treasury shares that were acquired in 2018 at P 24 per share. In May 1,2019, additional 5,000 shares were reacquired and immediately retired at P 26 each. These shares were originally issued at P 23. On June 1,2019, ABC issued 15,000 of the treasury shares at P 20 each. The cost method is used to record the treasury shares transaction. At December 31,2019, what amount should ABC show in its notes to financial statements as a restriction of retained earnings as a result of its treasury share transactions? A. P 480,000 B. P 10,000 C. P 130,000 D. P 120,000
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 24E
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At December 31,2018, ABC Company had 20,000 shares of P 20 par value treasury shares that were acquired in 2018 at P 24 per share. In May 1,2019, additional 5,000 shares were reacquired and immediately retired at P 26 each. These shares were originally issued at P 23. On June 1,2019, ABC issued 15,000 of the treasury shares at P 20 each. The cost method is used to record the treasury shares transaction.
At December 31,2019, what amount should ABC show in its notes to financial statements as a restriction of
A. P 480,000
B. P 10,000
C. P 130,000
D. P 120,000
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