At its date of incorporation, Leynes, Inc. issued 100,000 shares of its P10 par ordinary shares at P11 per share. During the current year, Leynes acquired 30,000 of its ordinary shares at a price of P16 per share and accounted for them by the cost method. Subsequently, these shares were reissued at a price of P12 per share. Leynes had made no other issues or acquisitions of its own ordinary shares. What effect does the reissuance of the stock have on the following accounts? Retained Share Premium Earnings a. Decrease Decrease No effect Decrease Decrease No effect C. d. No effect No effect

At its date of incorporation, Leynes, Inc. issued 100,000 shares of its P10 par ordinary shares at P11 per share. During the current year, Leynes acquired 30,000 of its ordinary shares at a price of P16 per share and accounted for them by the cost method. Subsequently, these shares were reissued at a price of P12 per share. Leynes had made no other issues or acquisitions of its own ordinary shares. What effect does the reissuance of the stock have on the following accounts? Retained Share Premium Earnings a. Decrease Decrease No effect Decrease Decrease No effect C. d. No effect No effect

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 6MCQ: Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were...

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