17) Entity As total shareholders equity was P900,000 before recording the following share transactions happened during the year:

Received cash subscriptions for 10,000 shares with par value of P1 at P14 per share. Share issuance costs amounted to P2,000. Received subscriptions for 20,000 shares at P20 per share. Twenty-five percent down payment was collected on subscription date.

Collected the remaining unpaid subscription price of 15,000 subscribed shares and issued the related share certificates. Share issuance costs amounted to P3,000.

How much is the balance of Entity As total shareholders equity after recording the transactions above?

Answer pattern: 1,000,000

18) On February 26, 20x1, Entity A acquires 10,000 of its own shares for P3 per share. The shares have a par value of P1 and were selling in the stock market at P4 per share on this date. To record the reacquisition, Entity A should

a. debit Treasury shares account for P30,000 b. credit Treasury shares account for P30,000. c. debit share premium account for 10,000. d. credit Treasury shares account for P40,000.

19) Two years ago, Entity A reacquired 2,000 of its own shares with par value of P100 per share for P240,000. Today, Entity A reissues half of the treasury shares at P160 per share. The journal entry to record the reissuance includes which of the following?

a. Credit to Share premium treasury shares for P40,000 b. Credit to Retained earnings unrestricted account for P240,000 c. Debit to Treasury shares account for P120,000 d. Credit to Share premium treasury shares for P80,000

20) Entity A reacquires 10,000 of its own shares for P50. The shares have par value of P10 and were originally issued at P15 per share. Subsequently, Entity A reissues the 10,000 shares at P48 per share. The journal entry to record the reissuance involves which of the following?

a. Debit to Retained earnings for P20,000 b. Credit to Cash for P480,000 c. Debit to Share premium for P50,000 d. Debit to Treasury shares for P500,000