What the journal entry to record the declaration of share

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Reference no: EM132773207

Problem 1: If a corporation reissued at P200 per share 100 shares of treasury stock that it had previously acquired for P280 per share and there wasn't any Share Premium-Treasury, it would debit

a share premium ordinary 8000
b treasury stock 8000
c loss on sale of treasury stock 8000
d retained earnings 8000

Problem 2: On June 25, 2019, Rosada Corp, issues a 30% share dividend on its 200,000 shares of P10 par value ordinary shares. The shares will be issued on July 8, 2019. The market price of Rosada Corp. stock is P15 per share on June 25, and on the date the shares are distributed, the stock is selling for P12 per share. The journal entry to record the declaration of the share dividend on June 25, 2019 will include a

a Dr. retained earnings 600000
b dr. retained earnings 900000
c cr. share premium 300000
d cr. share premium 200000

Reference no: EM132773207

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