Villon Corp. holds 10,000 shares of its P10 par value ordinary shares as treasury stock reacquired...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Villon Corp. holds 10,000 shares of its P10 par value ordinary shares as treasury stock reacquired in 2020 for P120,000. On Dec. 12, 2022, Villon reissued all 10,000 shares for P190,000. Under the cost method of accounting for treasury stock, the reissuance resulted in a credit to a. gain on sale of investments of P70,000. b. ordinary shares of P100,000. C. retained earnings of P70,000. d. share premium of P70,000. 10. Alisuag Corp.'s shareholders' equity accounts at Dec. 31, 2021 were as follows: Ordinary Shares, P20 par Share Premium Retained Earnings P8,000,000 2,550,000 1,275,000 All ordinary shares outstanding at Dec. 31, 2021 were issued in 2020 for P26 a share. On Jan. 4, 2022, Alisuag reacquired 20,000 of its ordinary shares at P24 a share and retired them. Immediately after the shares were retired, the balance in share premium was a. P2,470,000. b. P2,430,000. c. P2,510,000. d. P2,590,000. 11. The shareholders' equity section of Baas Corporation's statement of financial position at Dec. 31, 2020, was as follows: Ordinary Shares, P10 par, authorized 1,000,000 shares, issued and outstanding 900,000 shares Share Premium Retained Earnings Total Shareholders' Equity SOP 9,000,000 2,700,000 1,300,000 P13,000,000 All outstanding ordinary shares were issued in 2020 for P13 per share. On Jan. 2, 2021, Baas acquired 100,000 shares of its stock at P12 per share and retired them. Immediately after retirement of the shares, the balance in share premium should be a. P2,800,000. b. P2,600,000. c. P2,400,000. d. P2,500.000. Villon Corp. holds 10,000 shares of its P10 par value ordinary shares as treasury stock reacquired in 2020 for P120,000. On Dec. 12, 2022, Villon reissued all 10,000 shares for P190,000. Under the cost method of accounting for treasury stock, the reissuance resulted in a credit to a. gain on sale of investments of P70,000. b. ordinary shares of P100,000. C. retained earnings of P70,000. d. share premium of P70,000. 10. Alisuag Corp.'s shareholders' equity accounts at Dec. 31, 2021 were as follows: Ordinary Shares, P20 par Share Premium Retained Earnings P8,000,000 2,550,000 1,275,000 All ordinary shares outstanding at Dec. 31, 2021 were issued in 2020 for P26 a share. On Jan. 4, 2022, Alisuag reacquired 20,000 of its ordinary shares at P24 a share and retired them. Immediately after the shares were retired, the balance in share premium was a. P2,470,000. b. P2,430,000. c. P2,510,000. d. P2,590,000. 11. The shareholders' equity section of Baas Corporation's statement of financial position at Dec. 31, 2020, was as follows: Ordinary Shares, P10 par, authorized 1,000,000 shares, issued and outstanding 900,000 shares Share Premium Retained Earnings Total Shareholders' Equity SOP 9,000,000 2,700,000 1,300,000 P13,000,000 All outstanding ordinary shares were issued in 2020 for P13 per share. On Jan. 2, 2021, Baas acquired 100,000 shares of its stock at P12 per share and retired them. Immediately after retirement of the shares, the balance in share premium should be a. P2,800,000. b. P2,600,000. c. P2,400,000. d. P2,500.000.
Expert Answer:
Answer rating: 100% (QA)
1 Under the cost method of accounting for treasury stock the reissuance of treasury shares results i... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
Students also viewed these accounting questions
-
The Bigfork Company is a retail company that began operations on January 1,2018. The Bigfork Company is authorized to issue 1,000,000 shares of P10 par value ordinary share and 500,000 shares of 3%,...
-
Determine the transfer function from U(s) to Y(s) for the following block diagram. Provided are some recommended steps to take: a. Label each signal (line with arrow) b. Write the equation for each...
-
Explain the difference between impregnation and infiltration. Give some applications for each?
-
Consider the x and R charts in Figure 17.34. a. Calculate the natural tolerance limits for the improved process. b. Recalling that specifications state that the hardness depth of each camshaft must...
-
What idea, concept or issue stood out to you in Antikickback statute If you are to be a health services manager, how might you use or apply Antikickback statute information in your work? List and...
-
A tension test was performed on a magnesium alloy specimen having a diameter 0.5 in. and gauge length of 2 in. The resulting stressstrain diagram is shown in the figure. If the specimen is stressed...
-
In 2011, Ross Corporation had year-end assets of $550,000, sales $790,000 net income of $90,000, net cash flows from operating activities of $180,000, purchases of plant assets of $120,000 and sales...
-
Provide a brief summary of the following websites: Atwood, C. G. (2020). Succession planning basics (2nd edition.). ATD Press. Retrieved from...
-
Right now, one of the major things going on in the world is the war in Ukraine. There have been multiple attempts to get Russia to stand down but those have all failed. When the West put sanctions on...
-
Tamarisk Inc. is contemplating a capital project with a cost of $143000. The project will generate net cash flows of 542000 for year 1. $57000 for year 2 and $55000 for year 3. The asset has a...
-
Suppose a 9-month futures contract on a non-dividend paying stock with a share price of R60 and a risk-free interest rate of 0.8363% per month. You estimate that futures price should be priced to be...
-
1. Create a program that asks the user to create a password with 5-10 characters. While their password is the wrong size print an error message and keep asking them for a password. Once an acceptable...
-
A hair straightener (HS#8516.32) is made in Canada and its parts (HS#8516.90) are made from Mexico and China. The selling price for the hair straightener iron is CAD$50.00; the value for the...
-
E account and 1 balance sheet account, but never changes the fixed asset account. statement 3. The Ledger of the Day Company includes the following accounts. Briefly explain why each account may...
-
Write a summary about The meaning of the friendship in a social-networked world
-
Players A, B, and C toss a fair coin in order. The first to throw a head wins. What are their respective chances of winning?
-
In a survey, U.S. adults were asked to identify which social media platforms they use. The results are shown in the figure. Six adults who participated in the survey are randomly selected and asked...
-
Rotator cuff surgery has a 90% chance of success. The surgery is performed on three patients. Find the probability of the surgery being successful on exactly two patients.
-
Determine whether each experiment is a binomial experiment. If it is, specify the values of n, p, and q, and list the possible values of the random variable x. If it is not, explain why. 1. A certain...
Study smarter with the SolutionInn App