The stockholders’ equity account balances of Image Corporation as of December 31, 2020 are as follows:
Ordinary shares, P100 par; 50,000 shares authorized; 25,000 shares issued, P2,500,000
Share premium, P1,500,000
Accumulated profits, P1,000,000
Treasury shares, 2,000 shares at cost, P360,000
On January 10, 2021 Image reacquired additional 2,000 shares from stockholders at P225
On February 5, 2021, Image sold 2,500 treasury shares on the open market at P200 per share. The entry to record the sale on the books of Image should include:
Credit to Share premium at P27,500.
Debit to accumulate profits at P6,250.
Debit to Share premium at P6,250
Credit to Share premium at P50,000.