Hazel Company had 64,000 shares of P10 par value treasury shares. These shares were reacquired at a cost of P1,280,000. During the current year 2020, the company reissued 45,000 shares at P25 per share. Hazel Company used the cost method to account for treasury shares. At December 31, 2020, what amount should Hazel Company show in notes to financial statements as a restriction of retained earnings?

Hazel Company had 64,000 shares of P10 par value treasury shares. These shares were reacquired at a cost of P1,280,000. During the current year 2020, the company reissued 45,000 shares at P25 per share. Hazel Company used the cost method to account for treasury shares. At December 31, 2020, what amount should Hazel Company show in notes to financial statements as a restriction of retained earnings?

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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Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). Open the file EPS from the website for this book at cengagebrain.com. Enter all input items (AF) in the appropriate cells in the Data Section. Enter all formulas in the appropriate cells in the Answer Section. Enter your name in cell A1. Save the completed file as EPS2. Print the worksheet when done. Also print your formulas. Check figure: Basic earnings per share from continuing operations (cell D29), 5.94.
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