Reference no: EM132942366
Provide answers, solutions, and thorough explanations to the following problems concerning Share Capital Transactions Subsequent to Original Issuance.
Houston Rockets Company reported the following in its statement of shareholders equity on January 1, 2018.
Ordinary share capital, P 50 par value, 200,000 shares authorized,
100,000 shares issued P 5,000,000
Additional Paid in Capital 1,500,000
Retained earnings 516,000
Treasury shares at cost (5,000 shares) 400,000
The following events occurred in 2018:
May 1 1,000 treasury shares were sold for P 10,000
July 9 10,000 shares of previously unissued ordinary share were sold for P57 per share.
October 1 Share split 2 for 1
Problem 1: How many shares are outstanding at December 31, 2018?
Problem 2: After the split, what will be the cost per share of the treasury shares?
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