Kenya Corporation had an equity structure that consisted of P1 par value common stock, P3,500,000; paid-in...

 

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Kenya Corporation had an equity structure that consisted of P1 par value common stock, P3,500,000; paid-in capital in excess of par, P17,500,000; and retained earnings, P22,700,000. Transaction A: Believing that its share price was depressed due to general market conditions, Kenya's board of directors authorized the reacquisition of 250,000 shares of common stock. These treasury shares were purchased at P10 per share. Transaction B: Subsequent to Transaction A, the stock price increased to P17 per share, and half of the treasury shares were sold in the open market. Transaction C: Subsequent to Transaction B, Kenya experienced business difficulties that necessitated it selling the remaining treasury shares to raise additional cash. The shares were sold for P6 per share. Compute for the following account balances: APIC-Treasury Stock Retained Earnings Compute for Compute for Kenya Corporation had an equity structure that consisted of P1 par value common stock, P3,500,000; paid-in capital in excess of par, P17,500,000; and retained earnings, P22,700,000. Transaction A: Believing that its share price was depressed due to general market conditions, Kenya's board of directors authorized the reacquisition of 250,000 shares of common stock. These treasury shares were purchased at P10 per share. Transaction B: Subsequent to Transaction A, the stock price increased to P17 per share, and half of the treasury shares were sold in the open market. Transaction C: Subsequent to Transaction B, Kenya experienced business difficulties that necessitated it selling the remaining treasury shares to raise additional cash. The shares were sold for P6 per share. Compute for the following account balances: APIC-Treasury Stock Retained Earnings Compute for Compute for

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Transaction A Reacquisition of 250000 shares of common stock at P10 per share Treasury Stock 250000 ... View the full answer