During the year, an entity had the following activities:   Payment for the early payment of long-term bonds payable of P5,000,000 4,000,000 Payment of cash dividend declared in prior year 2,000,000 Preference share capital converted into ordinary share capital 1,000,000 Proceeds from sale of treasury shares (cost of treasury shares P1,000,000) 1,500,000               What amount should be reported as net cash used in financing activities? a.       4,500,000 b.      3,500,000 c.       2,500,000 d.      5,500,000

Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 17E: Reporting paid-in capital The following accounts and their balances were selected from the...
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 During the year, an entity had the following activities:

 

Payment for the early payment of long-term bonds payable of P5,000,000

4,000,000

Payment of cash dividend declared in prior year

2,000,000

Preference share capital converted into ordinary share capital

1,000,000

Proceeds from sale of treasury shares (cost of treasury shares P1,000,000)

1,500,000

 

            What amount should be reported as net cash used in financing activities?

a.       4,500,000

b.      3,500,000

c.       2,500,000

d.      5,500,000

 

 

 

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