Question
COVID Inc. shareholders equity account balance on December 31, 2018, were as follows: Ordinary Share. 800,000 Additional paid-in capital 1,600,000 Retained earnings. 1,845,000 The following
COVID Inc. shareholders equity account balance on December 31, 2018, were as follows:
Ordinary Share. 800,000 Additional paid-in capital 1,600,000 Retained earnings. 1,845,000
The following 2019 transactions and other information related to the shareholder's equity accounts:
a.Covid had 400,000 authorized shares of P5 par ordinary hare of which 160,000 shares were issued and outstanding.
b.On March 5, 2019, Covid acquired 5,000 shares of its ordinary share for P10 per share to hold as Treasury share. The share was originally issued at P15 per share. Covid uses the cost method to account for treasury shares. Treasury share is permitted in Covid's state of incorporation.
c.On July 15,2019, Covid declared and distributed a property dividend of inventory. The inventory had a P 75,000 carrying value and a P60,000 fair market value.
d.On January 2, 2017, Covid granted a share option to employees to purchase 20,000 shares of Covid's ordinary shares at P18 per share, which was the market on that date. The option may be exercised within a three-year period beginning January 2, 2019.The measurement date is the same as the grant date. On October 1,2019 employees exercised all 20,000 options when the market value of the share was P25 per share. Covid's issued new shares to settle the transaction.
e. Covid's net income for 2019 was P240,000.
What is Covid's share equity balance at December 31,2019? What is Covid's retained earning balance at Dec. 31,2019? What is Covid's Treasury Share balance at December 31,2019? What is Covid's Ordinary Share balance at Dec 31,2019? What is covid's additional paid in capital balance at December 32,3019?
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