BEBE Co. has the following information relating to its shareholders equity as of January 1, 2020.

Share capital, 200,000 authorized, P50 par value, 150,000 shares issued, 10,000 held in treasury	P7,500,000
Share premium – ordinary	600,000
Retained earnings	2,000,000
Treasury shares, at cost	550,000

The following events transpired in 2020:

• On March 31, 2020, BEBE reissued 2,000 of its treasury shares for P59 per share.
• On June 1, 2020, BEBE reissued 2,500 of its treasury shares for P50 each
• On December 1, 2020, BEBE retired 1,000 ordinary shares for P49 per share.

QUESTION 2/2

In relation with June 1, 2020 transaction, what is the journal entry of BEBE Co. to record the transaction?

Group of answer choices

A. DR. TREASURY SHARES, 137,500; CR. CASH, 125,000; CR.. SHARE PREMIUM - TREASURY SHARES, 8,000; CR. RETAINED EARNINGS, 4,500

B. DR. CASH, 125,000; DR. RETAINED EARNINGS, 12,500; CR. TREASURY SHARES, 137,500

C.DR. CASH, 125,000; CR. TREASURY SHARES, 125,000

D. DR. CASH, 125,000; DR. SHARE PREMIUM - TREASURY SHARES, 8,000; DR. RETAINED EARNINGS, 4,500; CR. TREASURY SHARES, 137,500

Answer rating: 100% (QA)

Answer Since the treasury shares which have been acquired at cost ... View the full answer