The questions are indicated on the picture.

PROBLEM 6: MULTIPLE CHOICE - COMPUTATIONAL 1. Cyan Corp. issued 20,000 shares of P5 par ordinary share at P10 per share. On December 31, 20x1, Cyan's retained earnings were P300,000. In March 20x2, Cyan reacquired 5,000 shares of its common stock at P20 per share. In June 20x2, Cyan sold 1,000 of these shares to its corporate officers for P25 per share. Cyan uses the cost method to record treasury stock. Profit for the year ended December 31, 20x2, was P60,000. At December 31, 20x2, what amount should Cyan report as retained earnings? a. 360,000 b. 365,000 c. 375,000 d. 380,000 2. Selected information from the accounts of Row Co. at December 31, 20x1, follows: Total profit since incorporation .............P420,000 Total cash dividends paid .............130,000 Total value of property dividends distributed ....................30,000 Excess of proceeds over cost of treasury stock sold, accounted for using the cost method ...........................110,000 In its December 31, 20x1, financial statements, what amount should Row report as retained earnings? a. 260,000 b. 290,000 (AICPA) c. 370,000 d. 400,000 3. Nest Co. issued 100,000 shares of common stock. Of these, 5,000 were held as treasury stock at December 31, 20x1. During 20x2, transactions involving Nest's common stock were as follows: . May 3 - 1,000 shares of treasury stock were sold. . August 6 - 10,000 shares of previously unissued stock were sold. . November 18 - a 2-for-1 stock split took effect. Laws in Nest's state of incorporation protect treasury stock from dilution. At December 31, 20x2, how many shares of Nest's common stock were issued and outstanding? Shares Issued Outstanding Shares Issued Outstanding a. 220,000 212,000 C. 222,000 214,000 b. 220,000 216,000 d. 222,000 218,000 (AICPA)