The Anchor Corporation's capital accounts are shown in the balance sheet as of December 31, 20x7:
Question:
The Anchor Corporation's capital accounts are shown in the balance sheet as of December 31, 20x7:
Share capital, 10,000 shares at P100 par value, P1,000,000
Share premium, P100,000
Additional paid in capital - treasury stock, P30,000
Retained earnings, P400,000
Treasury share, 1,000 shares , at cost, P150,000
During 20x8, the following transactions pertaining to the stockholders' equity were completed:
1. Issued share capital, 20,000 shares at P105.
2. Purchase of treasury share, 3,000 shares at P120 per share.
3. Reissued of treasury share, 3,000 shares at P110 per share.
4. Net income for 20x8 , P500,000 and dividend paid, P200,000.
The balance of Additional paid in capital - treasury stock as of December 31, 20x8 is
a. P15,000
b. P30,000
c. P-0-
d. P20,000
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer