Answer only The following information pertains toBlack Pink Corporation: Ordinaryshare capital, 50,000 shares, P100parP5,000,000Share premium -original issuance500,000Sharepremium – treasuryshares100,000ORetainedearnings1,000,0O0Treasury shares,5,000 shares at cost750,00Olf the5,000 ordinary shares held astreasury are subsequently retired,what amount should be debited toretained earnings account to recordthis transaction?Your answer

Solution: Cost per share of treasury stock = P750,000 / 50000 = P150 per share Original issue price…

The following information pertains to Black Pink Corporation: Ordinary share capital, 50,000 shares, P100 parP5,000,000Share premium - original issuance500,000Share premium - treasury shares100,00ORetained earnings1,000,000Treasury shares, 5,000 shares at cost750,000lf the 5,000 ordinary shares held as treasury are subsequently retired, what amount should be debited to retained earnings account to record this transaction?

The following information pertains to Black Pink Corporation: Ordinary share capital, 50,000 shares, P100 parP5,000,000Share premium - original issuance500,000Share premium - treasury shares100,00ORetained earnings1,000,000Treasury shares, 5,000 shares at cost750,000lf the 5,000 ordinary shares held as treasury are subsequently retired, what amount should be debited to retained earnings account to record this transaction?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 6MCQ: Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were...

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Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were originally issued at an average price of $10 per share. Later it resells 6,000 of the shares for $15 per share and the remaining 4,000 shares for $17 per share. How much gain or loss should Ames report on its income statement as a result of these transactions? $38.000 gain $0 $20,000 loss $20,000 loss and $38,000 gain
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The shareholder’s equity section of FED, Inc. contains the following:Preference share capital of P100 par, 15,000 shares - P1,500,000Preference share premium - P750,000Ordinary share capital of P20 par, 50,000 shares - P1,000,000Ordinary share premium - P250,000Retained Earnings P800,000 1,000 preference shares was reacquired by the company and retired for P200 per share. How much is the total shareholder’s equity after the retirement?
The following capital accounts are shown in the statement of financial position of George Corporation: Ordinary shares, 10,000 shares, par value P100 - 1,000,000 Premium on ordinary shares 20,000 Share premium - treasury shares 30,000 Accumulated profits and losses 750,000 Treasury shares, 2,000 shares at cost 250,000 The entire 2,000 treasury shares were sold for P200,000. What would be the balance of the accumulated profits and losses account after this sale?
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Charice Company revealed the following shareholder’s equity at year end:Preference share capital, P100 par 2,300,000Share premium – PS 805,000Ordinary share capital, P15 par 5,250,000Share premium 2,750,000Subscribed ordinary share capital 500,000Retained earnings 1,900,000Note payable 4,000,000Subscription receivable - ordinary 400,000How much is the legal capital?
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