Reference no: EM132854449

Question - At the beginning of current year, A Company was authorized to issue share capital of 100,000 shares with P50 par value. The entity had the following share capital transactions during the year:

Jan 1 - Sold 80,000 shares at P60 per share

May 1 - Reacquired 4,000 treasury shares at P65 per share

Jul 1 - Approved a share split of 5 for 1.

Oct 31 - Declared and issued a 10% share dividend when the market value of a share is P25.

Dec 31 - Reissued all of the treasury shares at P30

Dec 31 - Net income for the year was P3,000,000.

Required -

1. What is the number of shares outstanding at year-end?

a. 418,000

b. 438,000

c. 440,000

d. 422,000

2. What Amount should be reported as share capital at year-end?

a. 4,000,000

b. 4,380,000

c. 3,800,000

d. 3,760,000

3. What total amount should be reported as share premium at year-end?

a. 1,370,000

b. 1,710,000

c. 1,400,000

d. 1,970,000

4. What is the total shareholders' equity at year-end?

a. 8,140,000

b. 7,800,000

c. 7,560,000

d. 8,400,000