Homework Help is Here – Start Your Trial Now!
Business
Accounting
The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as follows:   Ordinary shares, P100 par; 50,000 shares authorized; 25,000 shares issued, P2,500,000 Share premium, P1,500,000 Accumulated profits, P1,000,000 Treasury shares, 2,000 shares at cost, P360,000   On January 10, 2021 Image reacquired additional 2,000 shares from stockholders at P225   On February 5, 2021, Image sold 2,500 treasury shares on the open market at P200 per share.   On March 15, 2021, Image retired 1,000 treasury shares of the remaining treasury shares, the entry to record the retirement shall include: Group of answer choices Debit to accumulated profits of P60,000 Debit to accumulated profits of P37,500 Debit to accumulated profits of P27,500 Debit to accumulated profits of P10,000

The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as follows:   Ordinary shares, P100 par; 50,000 shares authorized; 25,000 shares issued, P2,500,000 Share premium, P1,500,000 Accumulated profits, P1,000,000 Treasury shares, 2,000 shares at cost, P360,000   On January 10, 2021 Image reacquired additional 2,000 shares from stockholders at P225   On February 5, 2021, Image sold 2,500 treasury shares on the open market at P200 per share.   On March 15, 2021, Image retired 1,000 treasury shares of the remaining treasury shares, the entry to record the retirement shall include: Group of answer choices Debit to accumulated profits of P60,000 Debit to accumulated profits of P37,500 Debit to accumulated profits of P27,500 Debit to accumulated profits of P10,000

Intermediate Accounting: Reporting And Analysis
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...
See similar textbooks
icon
Related questions
Question

18.

The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as follows:

 

Ordinary shares, P100 par; 50,000 shares authorized; 25,000 shares issued, P2,500,000

Share premium, P1,500,000

Accumulated profits, P1,000,000

Treasury shares, 2,000 shares at cost, P360,000

 

On January 10, 2021 Image reacquired additional 2,000 shares from stockholders at P225

 

On February 5, 2021, Image sold 2,500 treasury shares on the open market at P200 per share.

 

On March 15, 2021, Image retired 1,000 treasury shares of the remaining treasury shares, the entry to record the retirement shall include:

Group of answer choices
Debit to accumulated profits of P60,000
Debit to accumulated profits of P37,500
Debit to accumulated profits of P27,500
Debit to accumulated profits of P10,000
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for stockholder's equity
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS