On December 31, 2021, the company presented the following information: Ordinary share capital, P50 par P6,000,000 Share premium 300,000 Retained earnings (1,200,000) The company decided to undergo quasi reorganization. As a result, the company's property, plant and equipment with cost of P8,000,000 and book value of P4,000,000 has recoverable amount of P3,000,000. Also, inventory would be written down by P300,000. The company will redeem its P50 par value ordinary shares and will issue equal number of ordinary shares with P30 par value. Based on the foregoing, determine balance of share premium after the quasi reorganization
On December 31, 2021, the company presented the following information: Ordinary share capital, P50 par P6,000,000 Share premium 300,000 Retained earnings (1,200,000) The company decided to undergo quasi reorganization. As a result, the company's property, plant and equipment with cost of P8,000,000 and book value of P4,000,000 has recoverable amount of P3,000,000. Also, inventory would be written down by P300,000. The company will redeem its P50 par value ordinary shares and will issue equal number of ordinary shares with P30 par value. Based on the foregoing, determine balance of share premium after the quasi reorganization
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 15DQ
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Transcribed Image Text:On December 31, 2021, the company presented the following information:
Ordinary share capital, P50 par
P6,000,000
Share premium
300,000
Retained earnings
(1,200,000)
The company decided to undergo quasi reorganization. As a result, the company's property,
plant and equipment with cost of P8,000,000 and book value of P4,000,000 has recoverable
amount of P3,000,000. Also, inventory would be written down by P300,000. The company
will redeem its P50 par value ordinary shares and will issue equal number of ordinary shares
with P30 par value. Based on the foregoing, determine balance of share premium after the
quasi reorganization
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