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  • GALVE - Solution 3

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    DERYL GALVE
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    The document outlines transactions for a company involving issuing shares, receiving subscriptions for shares, repurchasing treasury shares, and reissuing treasury shares. On January 1, the company issued 5,000 shares at ₱120 each, receiving ₱600,000 cash. It later received subscriptions for 2,000 additional shares. On July 1, it repurchased 1,000 shares for ₱90,000 cash. On September 1, it reissued 1,000 treasury shares for ₱140,000, allocating the proceeds among treasury shares, share premium, and retained earnings.

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    GALVE - solution 3

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    The document outlines transactions for a company involving issuing shares, receiving subscriptions for shares, repurchasing treasury shares, and reissuing treasury shares. On January 1, the company issued 5,000 shares at ₱120 each, receiving ₱600,000 cash. It later received subscriptions for 2,000 additional shares. On July 1, it repurchased 1,000 shares for ₱90,000 cash. On September 1, it reissued 1,000 treasury shares for ₱140,000, allocating the proceeds among treasury shares, share premium, and retained earnings.

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    © All Rights Reserved
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    10 views1 page

    GALVE - Solution 3

    Uploaded by

    DERYL GALVE
    The document outlines transactions for a company involving issuing shares, receiving subscriptions for shares, repurchasing treasury shares, and reissuing treasury shares. On January 1, the company issued 5,000 shares at ₱120 each, receiving ₱600,000 cash. It later received subscriptions for 2,000 additional shares. On July 1, it repurchased 1,000 shares for ₱90,000 cash. On September 1, it reissued 1,000 treasury shares for ₱140,000, allocating the proceeds among treasury shares, share premium, and retained earnings.

    Copyright:

    © All Rights Reserved
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    of 1

    1.

    Solution:
    Jan. 1, 20x1 Cash (5,000 x ₱120) 600,000
          Share capital (5,000 x ₱100) 500,000
          Share premium [5,000 x (₱120 – ₱100)] 100,000
    Jan. 31, Subscription receivable (2,000 x ₱160) 320,000
    20x1
          Subscribed share capital (2,000 x 200,000
    ₱100) 120,000
          Share premium [2,000 x (₱160 – ₱100)]

    2. Solutions:
    July 1, Treasury shares (1,000 x ₱90) 90,00
    20x1       Cash  0 90,000

    July 1, Retained earnings – unrestricted 90,00


    20x1       Retained earnings – 0 90,000
    appropriated

    Requirement (a):
    Sept. 1, Cash (1,000 x ₱140) 140,000
    20x1       Treasury shares (1,000 x ₱90)   90,000
             Share premium – treasury 50,000
    shares Requirement (b):
    Sept. 1, Retained earnings – appropriated 90,000
    20x1       Retained earnings – unrestricted 90,000
    Sept. 1, Cash (1,000 x ₱60) 60,000
    20x1 (a) Share premium – treasury shares -
    (b) Retained earnings 30,000
              Treasury shares (1,000 x ₱90)    90,000
    Sept. 1, Retained earnings – appropriated 90,000
    20x1          Retained earnings – 90,000
    unrestricted

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