Question
An analysis of equity of Hahn Corporation as of January 1, 2019, is as follows: Share capitalordinary, par value 20; authorized 100,000 shares; issued and
An analysis of equity of Hahn Corporation as of January 1, 2019, is as follows:
Share capitalordinary, par value 20; authorized 100,000 shares;
issued and outstanding 90,000 shares 1,800,000
Share premiumordinary 900,000
Retained earnings 760,000
Total 3,460,000
Hahn uses the cost method of accounting for treasury shares and during 2015 entered into the following transactions:
Acquired 2,500 of its shares for 75,000.
Sold 2,000 treasury shares at 35 per share.
Sold the remaining treasury shares at 20 per share.
Required:
Assuming no other equity transactions occurred during 2019, what should Hahn report at December 31, 2019, as total share premium?
Note Record the related journal entries
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