At the beginning of current year, Franta Company was authorized to issue share capital of 100,000 shares with P50 par value. The entity had the following share capital transactions during the year: Jan 1 Sold 80,000 shares at P60 per share May 1 Reacquired 4,000 treasury shares at P65 per share July 1 Approved a share split of 5 for 1 Oct 31 Issued a 10% share dividend when the market value of a share is P25. Dec 31 Reissued all of the treasury shares at P30 Dec 31 Net income for the year was P3,000,000 a. What is the number of shares outstanding at year-end? b. What amount should be reported as share capital at year-end? c. What amount should be reported as share premium at year-end? d. What amount should be reported as total shareholders' equity at year-end?
At the beginning of current year, Franta Company was authorized to issue share capital of 100,000 shares with P50 par value. The entity had the following share capital transactions during the year: Jan 1 Sold 80,000 shares at P60 per share May 1 Reacquired 4,000 treasury shares at P65 per share July 1 Approved a share split of 5 for 1 Oct 31 Issued a 10% share dividend when the market value of a share is P25. Dec 31 Reissued all of the treasury shares at P30 Dec 31 Net income for the year was P3,000,000 a. What is the number of shares outstanding at year-end? b. What amount should be reported as share capital at year-end? c. What amount should be reported as share premium at year-end? d. What amount should be reported as total shareholders' equity at year-end?
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...
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19. At the beginning of current year, Franta Company was authorized to issue share capital of 100,000 shares with P50 par value. The entity had the following share capital transactions during the year:
Jan 1 Sold 80,000 shares at P60 per share
May 1 Reacquired 4,000 treasury shares at P65 per share
July 1 Approved a share split of 5 for 1
Oct 31 Issued a 10% share dividend when the market value of a share is P25.
Dec 31 Reissued all of the treasury shares at P30
Dec 31 Net income for the year was P3,000,000
May 1 Reacquired 4,000 treasury shares at P65 per share
July 1 Approved a share split of 5 for 1
Oct 31 Issued a 10% share dividend when the market value of a share is P25.
Dec 31 Reissued all of the treasury shares at P30
Dec 31 Net income for the year was P3,000,000
a. What is the number of shares outstanding at year-end?
b. What amount should be reported as share capital at year-end?
c. What amount should be reported as share premium at year-end?
d. What amount should be reported as total shareholders' equity at year-end?
c. What amount should be reported as share premium at year-end?
d. What amount should be reported as total shareholders' equity at year-end?
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