13. Arnold Company was organized on January 1, 2017. After 3 years of profitable operations, the equity section of Arnold’s balance sheet on December 31, 2019 sheet was as follows: • Common stock P50 par, 500,000 shares authorized, 200,000 shares issued and outstanding, P10,000,000 • Additional paid-in capital, P5,000,000 • Retained earnings, P6,000,000 On January 15, 2020, Arnold Company reacquired 20,000 shares of common stock at P100 per share. The treasury stock is recorded at cost. On February 11, 2020, the company issued a 20% stock dividend. The market value of the common stock is P100 on this date. On July 1, 2020, the company declared a P20 cash dividend per share payable on August 1, 2020. On December 31, 2020, all treasury stock was sold at P120 per share and the company reported a net income of P5,000,000 for the year ended December 31, 2020. What should be the balance of retained earnings on December 31, 2020?
13. Arnold Company was organized on January 1, 2017. After 3 years of profitable operations, the equity section of Arnold’s
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