Professional Documents
Culture Documents
100, 000
100, 000
Cash
Subscription Receivable - Mr. A
40, 000
40, 000
Advertising
Interest
Receivable from Highest Bidder
Cash
10, 000
5, 000
10, 000
5, 000
10, 000
5, 000
60, 000
15, 000
P 75, 000
700 Shares
800 Shares
900 Shares
Cash
Receivable from Highest Bidder
Subscription Receivable - Mr. A
75, 000
100, 000
15, 000
60, 000
100, 000
120, 000
100, 000
20, 000
Cash
Subscription Receivable - Mr. A
40, 000
40, 000
Advertising
Interest
Receivable from Highest Bidder
Cash
10, 000
5, 000
10, 000
5, 000
10, 000
5, 000
80, 000
15, 000
95, 000
903 Shares
902 Shares
901 Shares
Cash
Receivable from Highest Bidder
Subscription Receivable - Mr. A
95, 000
100, 000
15, 000
80, 000
100, 000
120, 000
100, 000
20, 000
Cash
Subscription Receivable - Mr. A
40, 000
10, 000
5, 000
Advertising
Interest
10, 000
5, 000
40, 000
10, 000
5, 000
80, 000
15, 000
95, 000
903 Shares
902 Shares
901 Shares
Treasury Shares
Receivable from Highest Bidder
Subscription Receivable - Mr. A
95, 000
100, 000
15, 000
80, 000
100, 000
TRUST FUND DOCTRINE: for every Peso/amount for treasury shares you should
have a corresponding or back-u from your ACCUMULATED PROFITS (RE)
Appropriated Accumaulated Profits
Accumulated Profits
95, 000
95, 000
d. COST METHOD
Treasury Shares
Shares
Cost per share
P 95, 000
1, 000
P 95
a) sell at P 95
Cash
Treasury Shares
9, 500
9, 500
9, 500
9, 500
b) sell at P 100
Cash
Treasury Shares
Shared Premium- Treasury Shares
10, 000
9, 500
9, 500
500
9, 500
c) sell at P 90
Cash
Accumulated Profits
Treasury Shares
9, 000
500
9, 500
9, 500
9, 500
d) sell at P 80
Cash
Shared Premium -Treasury Shares
Accumulated Profits
Treasury Shares
8, 500
500
500
9, 500
9, 500
9, 500