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  • Treasury Shares

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    Ylese Lopez
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    Hanna Company began the year with 225,000 shares outstanding, P2.25 million in share capital, P1.5 million in share premium, and P2 million in retained earnings. During the year, it acquired 10,000 treasury shares for P500,000, sold 5,000 shares for P300,000 and 2,000 shares for P90,000, and earned P2.5 million in net income.

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    Hanna Company began the year with 225,000 shares outstanding, P2.25 million in share capital, P1.5 million in share premium, and P2 million in retained earnings. During the year, it acquired 10,000 treasury shares for P500,000, sold 5,000 shares for P300,000 and 2,000 shares for P90,000, and earned P2.5 million in net income.

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    9 views1 page

    Treasury Shares

    Uploaded by

    Ylese Lopez
    Hanna Company began the year with 225,000 shares outstanding, P2.25 million in share capital, P1.5 million in share premium, and P2 million in retained earnings. During the year, it acquired 10,000 treasury shares for P500,000, sold 5,000 shares for P300,000 and 2,000 shares for P90,000, and earned P2.5 million in net income.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    At the beginning of the current year, Hanna Company reported the following shareholder’s equity:

    Share capital, P10 par outstanding 225,000 shares 2,250,000


    Share premium 1,500,000
    Retained earnings 2,000,000

    During the current year, the entity had the following transactions:

     Acquired 10,000 treasury shares for P50 per share or P500,000.


     Sold 5,000 treasury shares at P60 a share.
     Sold 2,000 treasury shares at P45 per share.
     Net income for the year was P2,500,000.

    What amount should be reported as total amount of share premium at year-end?

    What amount should be reported as share capital at year-end?

    What amount should be reported as total shareholders’ equity at year end?

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