At the end of 2018, ABC Company has 18,000 shares, P 20 par ordinary shares that were all issued at an average price of P 24 per share. The retained earnings balance on this date is P 550,000. During 2019, the company entered into the following transactions: January 1 March 13 Issued 13,000 ordinary shares at P 25 each. Exchanged 12,000 ordinary shares for an equipment. On this date, the ordinary share is selling at P 27. There is no established fair market value for the equipment acquired. Reacquired 5,000 of its own ordinary shares at P 26. Accepted subscriptions for 10,000 ordinary shares at P 28. The contract called for a 20% down payment. Мay 8 July 16 August 28 December 1 Sold 4,000 treasury shares at P 29 each. Collected the balance due on July 16 subscriptions and issued the corresponding certificates. Profit for the year 2019 is P 640,000. No dividends were declared during the year.
At the end of 2018, ABC Company has 18,000 shares, P 20 par ordinary shares that were all issued at an average price of P 24 per share. The retained earnings balance on this date is P 550,000. During 2019, the company entered into the following transactions: January 1 March 13 Issued 13,000 ordinary shares at P 25 each. Exchanged 12,000 ordinary shares for an equipment. On this date, the ordinary share is selling at P 27. There is no established fair market value for the equipment acquired. Reacquired 5,000 of its own ordinary shares at P 26. Accepted subscriptions for 10,000 ordinary shares at P 28. The contract called for a 20% down payment. Мay 8 July 16 August 28 December 1 Sold 4,000 treasury shares at P 29 each. Collected the balance due on July 16 subscriptions and issued the corresponding certificates. Profit for the year 2019 is P 640,000. No dividends were declared during the year.
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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What is ABC's total shareholder's equity at December 31,2019?
What is the total cost of the remaining treasury shares?
How many ordinary shares are outstanding at December 31,2019?
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