1. IRH Co. recorded the sale at P6,000. If the sale was subject to a 20% trade discount and credit terms of 5/10, n/60, the list price was:

Group of answer choices

P7,700

P7,500

P4,500

P4,800

2.

The capital accounts of Earth Co. on January 1, 2021 are as follows:

5% Preference share capital, P100 par, 50,000 shares	P5,000,000
Preference share premium	250,000
Ordinary share capital, P20 par, 250,000 shares authorized	3,000,000
Ordinary share premium	750,000
Retained earnings	1,500,000

The following transactions affected the transactions affected the shareholders equity of the statement of financial position during 2021:

• Reacquired 5,000 ordinary shares at P16
• Issued 500 ordinary shares in settlement of a liability of P12,500
• Declared the regular dividends on preference shares and a cash dividend of P2.00 per share on ordinary shares
• Reissued 2,000 treasury shares in exchange for land valued at P50,000
• The ordinary shares were split two for one
• Reported net profit of P200,000 for the year.

Reacquisition of 5,000 ordinary share will result to

Group of answer choices

Credit to Cash of P80,000

Debit to Treasury shares of P 100,000

Credit to cash of P100,000

Debit to Retained earnings of P80,000