please answer multiple choice 7-11 with explanation

7. Cyan Company issued share capital of 20, 000 shares with P5 par at P10 per share. On December 31. 2007, Cyan's retained earnings were P300000. in March 2008, Cyan reacquired 5, 000 shares at P20 per share. in June 2008, Cyan sold 1. 000 of these shares to its corporate ofcers for P25 per share. Cyan uses the cost method to record treasury share. Net income for the year ended December 31 . 2008 was P60000. (vs-20) At December 31 , 2008, what amount should Cyan report as retained earnings? a. P360000 b. P360000 c. P370000 0'. P380. 000 8. East Company. a calendar year company. had sufficient retained earnings in 2008 as a basis for dividends but was temporarily short of cash. East declared a dividend of P100000 on April 1, 2008 and issued promissory notes to its shareholders in lieu of cash. The notes, which were dated April 1, 2008, had a maturity date of March 31, 2009 and a 10% interest rate. (VD-21) How should East account for the scrip dividend and related interest? a. Debit retained earnings for P110000 on April 1. 2008. b. Debit retained earnings for P110000 on March 31, 2009. 0. Debit retained earnings for P100000 on April 1, 2008 and debit interest expense for P10.000 on March 31. 2009. d. Debit retained earnings for P100000 on April 1, 2008 and debit interest expense for P7, 500 on December 31. 2008. 9. in 2007, Elm Company bought 10. 000 shares of Oil Company at a cost of P200000. On January 15, January 15 P250000; February 15 P240000 24) March l. 2003 is 0'. P422, 000 for this stock dividend? d. P300, 000 2008, Elm declared a property dividend of the Oil stock to shareholders of record on February l, 2008. payable on February 15, 2008. During 2008, the Oil stock had the toliowing market value: (V022) February 1 F 260000; The net effect of the foregoing transactions on retained eamings during the current year should be reduction of: a. P200000 P240000 0. P 250, 000 d. P260000 10. Franta Company was authorized to issue share capital of 100,000 shares with P50 par value on January 1, 2007. Eighty thousand shares were sold during the first year at P50 per share and 4.000 shares were later reacquired as treasury at P65 per share. A share split of 5 for 1 was approved on December 31, 2007. On January 31, 2008, a 10% stock dividend was paid and on March 1, 2008, the treasury shares were reissued at P68 per share. (V9- The number of shares issued and outstanding on a. P410000 b. P438,000 c. P440000 11. On May 31. 2008. Sol Company's board of directors declared a 10% stock dividend. The market price of Sal's 30, 000 outstanding shares of P20 par value was P90 per share on that date. The stock dividend was distributed on July 31. 2008, when the stock's market price was P100 per share. (V945) What amount should Sol credit to share premium a. P210000 b. P240000 c. P270000