Solutions: D SC - Ordinary Share Premium Retained Earnings Treasury Shares
Solutions: D SC - Ordinary Share Premium Retained Earnings Treasury Shares
Solutions: D SC - Ordinary Share Premium Retained Earnings Treasury Shares
What total amount should be recognized as share premium on December 31, 2022?
A. 1,830,000 B. 1,850,000 C. 2,390,000 D. 2,370,000
SOLUTIONS: D
SC – Ordinary Share Premium Retained earnings Treasury shares
Jan. 15 3,000,000 1,500,000
Feb. 14 200,000 100,000
Mar. 27 60,000
Oct. 31 520,000
Dec. 17 500,000 250,000
Total 2,370,000
Use the following information for the next two (2) questions:
Shokt Company’s adjusted balance at December 31, 2021, includes the following account balances:
8% preference stock (preference shares), P100 par 900,000
Common stock (ordinary shares), P3 par 500,000
Subscribed common stock (subscribed ordinary shares) 400,000
Subscription receivable (on ordinary shares) 150,000
Additional paid-in capital (share premium) – common stocks 300,000
Additional paid-in capital (share premium) – preferred stock 250,000
Retained earnings: appropriated for uninsured earthquake losses 100,000
Retained earnings: unappropriated 200,000
Treasury stock at cost 70,000
Net unrealized loss on investment measured at fair value through other comprehensive income 40,000
Net unrealized gain on foreign currency translation adjustment 25,000
Revaluation surplus 280,000
2) The amount that Shokt Company should report as total stockholders’ equity in its December 31, 2021 balance sheet is
A. 2,695,000 B. 2,775,000 C. 2,995,000 D. 2,970,000
ANSWER: A, A
8% preference stock (preference shares), P100 par 900,000
Common stock (ordinary shares), P3 par 500,000
Subscribed common stock (subscribed ordinary shares) 400,000
Subscription receivable (on ordinary shares) (150,000)
Additional paid-in capital (share premium) – common stocks 300,000
Additional paid-in capital (share premium) – preferred stock 250,000
Retained earnings: appropriated for uninsured earthquake losses 100,000
Retained earnings: unappropriated 200,000
Treasury stock at cost (70,000)
Net unrealized loss on investment measured at fair value through other comprehensive income (40,000)
Net unrealized gain on foreign currency translation adjustment 25,000
Revaluation surplus 280,000
Total 2,695,000
8% preference stock (preference shares), P100 par 900,000
Common stock (ordinary shares), P3 par 500,000
Subscribed common stock (subscribed ordinary shares) 400,000
Subscription receivable (on ordinary shares) (150,000)
Additional paid-in capital (share premium) – common stocks 300,000
Additional paid-in capital (share premium) – preferred stock 250,000
Total 2,200,000