Question
An analysis of equity of Hahn Corporation as of January 1, 2020, is as follows: Share capitalordinary, par value P20; authorized 100,000 shares; issued and
An analysis of equity of Hahn Corporation as of January 1, 2020, is as follows: Share capitalordinary, par value P20; authorized 100,000 shares; issued and outstanding 90,000 shares P1,800,000 Share premiumordinary 900,000 Retained earnings 760,000 Total P3,460,000 Hahn uses the cost method of accounting for treasury shares and during 2020 entered into the following transactions: Acquired 2,500 of its shares for P75,000. Sold 2,000 treasury shares at P35 per share. Sold the remaining treasury shares at P20 per share. Assuming no other equity transactions occurred during 2020, what should Hahn report at December 31, 2020, as total share premium?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started