GAMORA Corporation’s shareholders’ equity is composed of 10,000, ₱10 par ordinary shares, ₱40,000 share premium, and accumulated profits of ₱600,000. If a 40% bonus issue is declared when the shares are selling for ₱50 per share, what amount should be transferred from the accumulated profits account to the share premium account
GAMORA Corporation’s shareholders’ equity is composed of 10,000, ₱10 par ordinary shares, ₱40,000 share premium, and accumulated profits of ₱600,000. If a 40% bonus issue is declared when the shares are selling for ₱50 per share, what amount should be transferred from the accumulated profits account to the share premium account
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 7EB: Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the...
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- GAMORA Corporation’s shareholders’ equity is composed of 10,000, ₱10 par ordinary shares, ₱40,000 share premium, and
accumulated profits of ₱600,000. If a 40% bonus issue is declared when the shares are selling for ₱50 per share, what amount should be transferred from the accumulated profits account to the share premium account? *
a. ₱ 40,000
b. ₱ 200,000
c. ₱ 160,000
d. ₱ -0-
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