Prob 21 -10

ANSWER: C. 1,083,000

Per book 980,000

Treasury shares:
1000 x 28 (28,000)
900 x 30 (27,000)
Reissuance of treasury (1500 x 32) 48,000
Net income 110,000
Shareholder's equity at year-end 1,083,000

Prob 21 -12

ANSWER: A. 3,330,000

5-Jan Cash 6,750,000

Outstanding shares 4,050,000
Share premium - outstanding shares 2,700,000

28-Jul Treasury shares 990,000

Cash 990,000

31-Dec Cash 1,620,000

Treasury shares 990,000
Share premium 630,000

Share premium, january 5 2,700,000

Share premium, dec 31 630,000
Total share premium 3,330,000

Prob 21 -13

ANSWER: C. 50

New par value (10 x 5) 50

The reverse share split reduces the number of shares to 2,000 while increasing the par value to P50, resulting in a total capital

Prob 21 - 14

ANSWER: D. 225,000

Total ordinary shares issued (200,000 + 100,000) 300,000

Less: Treasury ordinary shares (75,000)
Ordinary shares outstanding 225,000

Prob 21 - 15

ANSWER: A. 110,000

1-Feb Number of shares issued 60,000

1-Jul Number of shares reacquired but not canceled (5000)
55,000
x2
Number of ordinary shares outstanding at the year-end 110,000

Prob 21 - 17

ANSWER: A. Issued: 220,000 Outstanding: 212,000

Original shares issued 100,000

New shares issued 10,000
Total shares ssued before split 110,000

Shares issued after split (110,000 x 2) 220,000

Treasury shares after split (4,000 x 2) (8,000)
Outstanding ordinary shares 212,000
to P50, resulting in a total capital of P100,000, the same as before the split.