1. What amount of retained earnings should be appropriated as a result of the given transactions? * The following information pertains to IRON MAN Company: a. Dividends on its 50,000 shares of 10%, P100 par value cumulative preference share capital have not been declared or paid for 3 years. b. Treasury ordinary shares were acquired at a cost of P1,000,000 during the year. The treasury share had not been reissued as of year-end. c. At year-end, IRON MAN appropriated P3,000,000 of retained earnings for the construction of a new plant. Also, P2,000,000 of cash was restricted for the retirement of bonds payable due in the next year. d.

1. What amount of retained earnings should be appropriated as a result of the given transactions? * The following information pertains to IRON MAN Company: a. Dividends on its 50,000 shares of 10%, P100 par value cumulative preference share capital have not been declared or paid for 3 years. b. Treasury ordinary shares were acquired at a cost of P1,000,000 during the year. The treasury share had not been reissued as of year-end. c. At year-end, IRON MAN appropriated P3,000,000 of retained earnings for the construction of a new plant. Also, P2,000,000 of cash was restricted for the retirement of bonds payable due in the next year. d.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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