Reference no: EM133101718
Questions -
Q1. Irareza Company was organizedon January 1, 2020 with authorized capital of 110,000 shares of 200 par value.
January 10 Issued 27,500 shares at 220 a share
March 25 Issued 1,100 shares for legal services when the fair value was 240 a share September 30 issued 5,500 shares for a tract of land when the fair value was 260 a share
What amount should be reported for share premium?
Q2. On January 1, 2020, Vicky Company had 137,500 share issued which included 27,500 shares held as treasury.
January 1 through October 31 - 14,300 treasury shares were distributed to officers as part of a share compensation plan
November 1 - A 3-for-1 share split took effect
December 1 - The entity purchased 5,500 of its own shares to discourage an unfriendly takeover. These shares were not retired.
On December 31, 2020, how many shares were issued and outstanding, respectively?
Q3. On December 31, 2020, Rachel Company canceled 5,500 shares of 25 par value held in treasury at an average cost of 130 per share. Before recording the cancelation of the treasury shares, the entity had the following balances:
Share capital issued originally at P30 per share 687,500
Share premium 825,000
Retained earnings 990,000
Treasury shares, at cost 715,000
On December 31, 2020, what is the share capital outstanding?