Jones Company reported the following shareholders’ equity on January 1, 2020: • Share capital, P5 par, 600,000 shares authorized, 200,000 shares issued and outstanding, P1,000,000 • Share premium, P6,000,000 • Retained Earnings, P2,800,000 On January 31, 2020, the entity reacquired 10,000 shares at P30 per share to be held as a treasury. On April 1, 2020, half of the treasury shares were issued at P25 per share and the remaining was retired. On July 1, 2020, the entity declared and issued a 20% share dividend when the fair value of the shares is P32. On December 31, 2020, the entity declared and paid a cash dividend of P10 per share. The net income for the current year was P3,000,000. The balance of the share premium account on December 31, 2020, is?
17. Jones Company reported the following shareholders’ equity on January 1, 2020:
• Share capital, P5 par, 600,000 shares authorized, 200,000 shares issued and outstanding, P1,000,000
• Share premium, P6,000,000
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On January 31, 2020, the entity reacquired 10,000 shares at P30 per share to be held as a treasury. On April 1, 2020, half of the treasury shares were issued at P25 per share and the remaining was retired. On July 1, 2020, the entity declared and issued a 20% share dividend when the fair value of the shares is P32. On December 31, 2020, the entity declared and paid a cash dividend of P10 per share. The net income for the current year was P3,000,000. The balance of the share premium account on December 31, 2020, is?
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