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BEBE Co. has the following information relating to its shareholders equity as of January 1, 2020. Share capital, 200,000 authorized, P50 par value, 150,000 shares

BEBE Co. has the following information relating to its shareholders equity as of January 1, 2020.

Share capital, 200,000 authorized, P50 par value, 150,000 shares issued, 10,000 held in treasury

P7,500,000

Share premium – ordinary

600,000

Retained earnings

2,000,000

Treasury shares, at cost

550,000

The following events transpired in 2020:

  • On March 31, 2020, BEBE reissued 2,000 of its treasury shares for P59 per share.
  • On June 1, 2020, BEBE reissued 2,500 of its treasury shares for P50 each
  • On December 1, 2020, BEBE retired 1,000 ordinary shares for P49 per share.

QUESTION 2/2

In relation with June 1, 2020 transaction, what is the journal entry of BEBE Co. to record the transaction?

Group of answer choices

A. DR. TREASURY SHARES, 137,500; CR. CASH, 125,000; CR.. SHARE PREMIUM - TREASURY SHARES, 8,000; CR. RETAINED EARNINGS, 4,500

B. DR. CASH, 125,000; DR. RETAINED EARNINGS, 12,500; CR. TREASURY SHARES, 137,500

C.DR. CASH, 125,000; CR. TREASURY SHARES, 125,000

D. DR. CASH, 125,000; DR. SHARE PREMIUM - TREASURY SHARES, 8,000; DR. RETAINED EARNINGS, 4,500; CR. TREASURY SHARES, 137,500

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