Sandwick Corporation was organized on January 1, 2014, with authorized capital of 750,000 ordinary shares with a $10 par value. During 2014, Sandwick issued 30,000 shares at $12 per share, purchased 3,000 treasury shares at $13 per share, and sold 3,000 treasury shares at $14 per share. What is the amount of total share premium at December 31, 2014?

Question

Quizplus · Accepted Answer

Total share premium = (Total amount received from issuing shares - Par value of shares issued) + (Total amount received from selling treasury shares - Total cost of treasury shares purchased)

= [(30,000 shares x $12 per share) - (30,000 shares x $10 par value per share)] + [(3,000 shares x $14 per share) - (3,000 shares x $13 per share)]

= [$360,000 - $300,000] + [$42,000 - $39,000]

= $60,000 + $3,000

= $63,000

Sandwick Corporation Was Organized on January 1, 2014, with Authorized