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

See similar textbooks

Related questions

Q: Juniper Corporation provided the following summary balance sheet information: Dec. 31, 20X8 Dec. 31,…

A: Introduction We have given balance sheet information im this problem. We have to calculate the net…

Q: Hammer Time Company reported the following: • Income from continuing operations of $1,000,000 • Loss…

A: Explanation:- To calculate the earnings per share (EPS) on net income for Hammer Time, we need to…

Q: Assad Corporation repurchases 10,000 of its shares for $12 per share. The shares were originally…

A: The shares are issued in order to arrange the capital for the business of the company.

Q: Appendix: Earnings per share, discontinued operations The net income reported on the income…

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: Note 1. During the year, Metlock Inc. suffered a major loss from discontinued operations of…

A: Earnings per share (EPS) is a financial metric that indicates the amount of a company's net income…

Q: The management of Kunkel Company is considering the purchase of a $20,000 machine that would reduce…

A: 1) Net present value of the investment in the machine:- First of all we need to calculate Present…

Q: a. Determine the per-share figure for common stock for income before discontinued operations. Round…

A: a) Income before discontinued operations = Net income - Gain on discontinued operations =…

Q: A portion of the combined statement of income and retained earnings of Crane Inc. for the current…

A: Earnings per share (EPS) is a financial metric that indicates the amount of a company's net income…

Q: Bonita Corporation began business by issuing 633600 shares of $5 par value common stock for $30 per…

A: A balance sheet depicts a company's assets, liabilities, and shareholder's equity at a given point…

Q: There were no changes in the shares outstanding during 2021. The rate of cash flow to total…

A: To determine the rate of cash flow to total liabilities, we first must determine the total…

Q: Apex Inc. reports the following for a recent year: Income from continuing operations before income…

A: Income statement is the one which is prepared by the entity for the purpose of determining the…

Question

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.
d. Also, P2,000,000 of cash was restricted for the retirement of bonds payable due in the next year.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Income Statement and Earnings per Share for Discontinued Operations Apex Inc. reports the following for a recent year: Income from continuing operations before income tax expense $1,000,000 Loss from discontinued operations $240,000* Weighted average number of shares outstanding 20,000 Applicable tax rate 40% *Net of any tax effect. Question Content Area a. Prepare a partial income statement for Apex Inc., beginning with income from continuing operations before income tax expense.
A portion of the combined statement of income and retained earnings of Blue Inc. for the current year follows. Income before extraordinary item $15,060,000 Loss from discontinued operations, net of applicable income tax (Note 1) 1,320,000 Net income 13,740,000 Retained earnings at the beginning of the year 84,220,000 97,960,000 Dividends declared: On preferred stock—$6.00 per share $300,000 On common stock—$1.75 per share 15,050,000 15,350,000 Retained earnings at the end of the year $82,610,000 Note 1. During the year, Blue Inc. suffered a major loss from discontinued operations of $1,320,000 after applicable income tax reduction of $1,220,000.At the end of the current year, Blue Inc. has outstanding 8,670,000 shares of $10 par common stock and 50,000 shares of 6% preferred. On April 1 of the current year, Blue Inc. issued 980,000 shares of common stock for $32 per share to help…
Do not give answer in image
D1.
1. The following information was taken from the accounts of JT Corp at year end:Total income since incorporation P900,000Total cash dividends paid P260,000Proceeds from sale of donated shares P 90,000Total value of share dividends distributed P60,000Excess of proceeds over cost of treasury stocks sold P140,000What should be the current balance of retained earnings? a. P780,000b. P520,000c. P720,000d. P580,0002. see imagechoices: a. 176,000b. 263,000c. 204,000d. 321,000
A Company issued $5,00,000/- new capital divided into $.10/- shares at a premium of $4/- per share payable as On Application $1/- per share On Allotment $4/- per share & $.2/- premium On Final Payment $.5/- per share & $.2/- premium Overpayments on application were to be applied towards sum due on allotment. Where no allotment was made money was to be returned in full. The issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted only 1,000 shares and applicants for 2,000 were sent letters of regret. All money due on allotment and final call was duly received. Make the necessary entries in the company‟s book.