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The stockholders equity section of K Pop Corp balance sheet at December 31, 2019 was as follows:
Ordinary shares P10 par authorized 1,000,000 shares, issue and Outstanding 900,000) P9,000,000
Share premium 2,700,000
Retained Earnings 1,300,000
Problem 1: On Jan 2, 2020 K Pop purchased and retired 100,000 shares of the stocks for P1,800,000. Immediately after retirement of these 100,000 shares, balances of the share premium and retained earnings account respectively should be :
a. P2,400,000 800,000
b. P1,900,000 1,300,000
c. P00,000 P1,300,000
d. P 900,000 P1,300,000
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