Question
At the beginning of the current year, Hanna Company reported the following shareholders' equity: Share capital, P1O par, outstanding 225,000 shares 2250000 Share premium 1500000
At the beginning of the current year, Hanna Company reported the following shareholders' equity:
Share capital, P1O par, outstanding 225,000 shares 2250000
Share premium 1500000
Retained earnings: 2000000
During the current year, the entity had the following transactions:
* Acquired 10,000 treasury shares for P50 per share or P500,000.
* Sold 5,000 treasury shares at P60 a share.
*Sold 2,000 treasury shares at P45 per share.
* Net income for the year was P2,500,000.
1. What amount should be reported as the total amount of share premium at year-end?
2. What amount should be reported as share capital at year-end?
3. What amount should be reported as total shareholders' equity at year-end?
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