Giron accounts for treasury stock under cost method. On Dec. 31, 2014, the total par value of the is

On jan. 1, 2014 Giron Co. reported the following oin its shareholders' equity section:

Ordinary shares,$5 par value, Authorized 200,000 $500,000
shares,issued 100,000 shares
Share premium-ordinary 1,500,000
Retained earnings 516,000
__________
$2,516,000
Treasury stock, at cost, 5,000 shares (40,000)
__________
Total shareholders' Equity $2,476,000

The following occured in 2014:

May 1:1000 shares of treasury stock were sold for $10000.
july 9 : 10000 shares of previously unissued ordinary shares were sold for $12 per share.
Oct. 1 : The distribution of a 2-for-1 split resulted in the ordinatry shares' per share par value being halved,

Giron accounts for treasury stock under cost method. On Dec. 31, 2014, the total par value of the issued ordinary shares should be.


A. $550000
B. $518000
C. $291000
D. $530000

joulesbeatingo
Asked Feb 23, 2015

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