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Foxtrot Company had 20,000 ordinary treasury shares with a par value of P 1 per share that had been acquired last year at P 12 per share. In May this year, Foxtrot issued 15,000 of these treasury shares at P 10 per share. The cost method is used to record treasury share transactions. 8. At December 31 this year, what amount should Foxtrot show as a restriction of Retained Earnings as a result of its treasury share transactions? a. P 5,000. b. P 10,000. c. P 60,000. d. P 90,000. Item No. 9 is based on the following information: Golf Company issued 200,000 ordinary shares when it began operations last year and issued an additional 100,000 shares this year. Golf also issued preference shares convertible to 100,000 ordinary shares. Last year, Golf purchased 75,000 ordinary shares and held them in treasury. 9. At December 31 this year, how many ordinary shares of Golf were outstanding? a. 225,000. b. 300,000. c. 325,000. d. 400,000. Item No. 10 is based on the following information: On December 1 this year, Hotel Company received a donation of its 2,000 ordinary shares with a par value of P 50 per share. On that date, the fair value of the shares was P 350 per share. The shares were originally issued for P 250 per share. 10. By what amount would the foregoing donation cause Total Shareholders Equity to decrease? a. P 0. b. P 200,000. c. P 500,000. d. P 700,000

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