A share split of 5 for 1 was approved on december 31 2014


Question - Franta Company was authorized to issue share capital of 100,000 shares with P50 par value on January 1, 2014. Eighty thousand shares were sold during the first year at P50 per share and 4,000 shares were later reacquired as treasury at P65 per share. A share split of 5 for 1 was approved on December 31, 2014. On January 31, 2015, a 10% stock dividend was paid and on March 1, 2015, the treasury shares were reissued at P68 per share.

What is the number of shares issued and outstanding on March 1, 2015?

a. 418,000

b. 438,000

c. 440,000

d. 422,000

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Accounting Basics: A share split of 5 for 1 was approved on december 31 2014
Reference No:- TGS02710681

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