Answered: How much is charged to Retained…

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 5MC

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1. ABC Corporation declared 25% bonus issue to its ordinary shareholders on December 31,2021. As of this date, the corporation have a balance in their ordinary share capital account of P 5,000,000 with par value of P 50. No shares were reacquired by the corporation from its shareholders.Assuming the current market value of the share at the date of declaration is P 52, How much is charged to Retained Earnings? a. 1,250,000

b. 1,300,000

c. 1,000,000

d. 1,500,000

2. ABC Corporation declared 15% bonus issue to its ordinary shareholders on December 31,2021. As of this date, the corporation have a balance in their ordinary share capital account of P 5,000,000 with par value of P 50. There are 5,000 ordinary shares were reacquired as of December 31,2021. .Assuming the current market value of the share at the date of declaration is P 52, How much is charged to Retained Earnings?

a. 741,0000

b. 712,500

c. 780,000

d. 750,000

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