Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An analysis of equity of Palestine Corporation as of January 1, 2019, is as follows: Share capital-ordinary, par value $20, authorized 100,000 shares; Issued and

image text in transcribed
An analysis of equity of Palestine Corporation as of January 1, 2019, is as follows: Share capital-ordinary, par value $20, authorized 100,000 shares; Issued and outstanding 90,000 shares $1,800,000 Share premium-ordinary 900,000 Retained earnings 760000 Total $3.460.000 Palestine Corporation uses the cost method of accounting for treasury shares and during 2019 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. Assuming no other equity transactions occurred during 2019, what should Palestine Corporation report on December 31, 2019, as total share premium (Ordinary and Treasury)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Accounting questions