Use the following information for the next three (3) questions:At the beginning of current year, Axed Company was authorized to issue share capital of 100,000 shares with P30 par value. Axed had the following share capital transactions during the year: January1Issued 80,000 shares at P70 per shareMay1Reacquired 4,000 treasury shares at P65 per shareJuly1Approved a share split of 5 for 1October31Issued a 10% share dividend when the market value of a share is P25December31Reissued all of the treasury shares at P35December31Net income for the year was P4,500,000.What total amount should be reported as share premium at year-end?

Share premium is the amount that is received by the company in excess of the par value on the share.…

Answered: At the beginning of current year, Axed…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 6PA: EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of...

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Use the following information for the next three (3) questions:

At the beginning of current year, Axed Company was authorized to issue share capital of 100,000 shares with P30 par value. Axed had the following share capital transactions during the year:

January	1	Issued 80,000 shares at P70 per share
May	1	Reacquired 4,000 treasury shares at P65 per share
July	1	Approved a share split of 5 for 1
October	31	Issued a 10% share dividend when the market value of a share is P25
December	31	Reissued all of the treasury shares at P35
December	31	Net income for the year was P4,500,000.

What total amount should be reported as share premium at year-end?

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