What entry to record the sale on the books of image should

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The shareholders' equity account balances of Image Corporation as of December 31, 2012 are as follows:

Ordinary Share Capital, P100 par; 50,000 shares authorized;

25,000 shares issued P 2,500,000

Share Premium 500,000

Accumulated Profits 1,000,000

Treasury stock, 2,000 shares at cost (320,000)

Total P 3,680,000

Problem 1: On January 2, 2013, Image sold the treasury shares on the open market at P200 per share. The entry to record the sale on the books of Image should include a credit to

a. gain on sale of treasury stock of P 80,000               c. accumulated profits of P 80,000

b. share premium of P 80,000                                    d. share premium of P 120,000

Reference no: EM132745373

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