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Give the journal entry to record the recapitalization

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Reference no: EM132765153

Mac Corporation showed the following shareholders' equity accounts as of December 31, 201E:

Share Capital, P150 par value, authorized 25,000 shares, issued 20,000 shares P 3,000,000

Share Premium                  200,000

Retained Earnings                 240,000

Problem 1: Give the journal entry to record the recapitalization under each of the following independent assumptions:

  1. All the issued shares are cancelled in exchange for no par value share capital with stated value of P125 per share.
  2. All the issued shares are cancelled in exchange for no par value share capital with stated value of P160 per share.
  3. The par value is reduced to P145 per share.
  4. The par value is increased to P155 per share.
  5. A share split of five (5) new shares with a par value of P30 per share for each old share is declared and affected.
  6. A share split of two (2) old shares for each new share with a par value of P300 per share is declared and affected.

Reference no: EM132765153

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