On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market price of the stock is P50 per share. The company also has 50,000 ordinary shares in the treasury...

On July 1, 2021, Funk Company has 400,000 shares of P25 par ordinary outstanding and the market price of the stock is P50 per share.  The company also has 50,000 ordinary shares in the treasury reacquired at a total cost of P1,650,000 On the same date, Funk Company declared a 1 for 5 share split.  Immediately before the split, the total Share premium was P1,500,000.

1. If half of the treasury shares were reissued at P10 per share, the entry to record the reissuance shall involve:
   A. Debit Accumulated profits of 425,000
   B. Credit to Share Premium at 850,000
   C. Credit to Share Premium at 425,000
   D.  Debit Accumulated profits of 850,000
   
   
   
   


2. What should be the balance in Funk Company’s Ordinary share account after the share split is effected?