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What should be the balance in the share premium immediately

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Problem 1: Effective December 31, 2011, the shareholders of Rap Company approved a two-for-one split of the entity's share capital, and an increase in entity's share capital and an increase in authorized shares from 100,000 shares (par value P20) to 200,000 sahres (par value P10).

Rap's shareholders' accounts immediately before issuance of the split shares were as follows:

Share capital, par value P20; 100,000 shares authorized; 50,000 sahres outstanding P1,000,000

Share premium                      P150,000

Retained Earnings                  P1,350,000

Question 1: What should be the balance in the share premium immediately after the share spit is effected?

Reference no: EM132466965

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