Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market price of the stock is P50 per share.

On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market price of the stock is P50 per share. The company also has 50,000 ordinary shares in the treasury reacquired at a total cost of P1,650,000 On the same date, Funk Company declared a 1 for 5 share split. Immediately before the split, the total Share premium was P1,500,000.

If half of the treasury shares were reissued at P10 per share, the entry to record the issuance shall involve:

a. Debit to Accumulated Profits at 425,000

b. Debit to Accumulated Profits at 850,000

c. Credit to Share Premium at 850,000

d. Credit to Share Premium at 425,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Design Of Cost Management Systems The Text Cases And Readings

Authors: Robin Cooper

1st Edition

0132041243, 978-0132041249

More Books

Students also viewed these Accounting questions

Question

What are the attractive properties of the normal distribution? LO1

Answered: 1 week ago

Question

6. List and explain important trends in compensation management.

Answered: 1 week ago

Question

What are our strategic aims?

Answered: 1 week ago