4. How much is the TOTAL RESERVES? On December 31, 2021, the statement of financial position of FRUITS Company showed the following shareholders' equity accounts: . Ordinary shares, par 50, authorized 100,000 shares, issued 85,000 shares, in treasury 7,500 shares - 4,250,000 12% Preference shares, par 75, authorized 50,000 shares, issued 20,000 shares, in treasury 4,000 shares - 1,500,000 ● Share premium in excess of par -> 862,500 Reserve for Treasury shares - 725,000 Treasury ordinary shares - 435,000; Treasury preference shares - 290,000 Retained earnings, unrestricted - 2,168,000 Net income for the year - 762,000 Cash dividends declared - 194,000; 2 years in arrears, current year is not yet included
4. How much is the TOTAL RESERVES? On December 31, 2021, the statement of financial position of FRUITS Company showed the following shareholders' equity accounts: . Ordinary shares, par 50, authorized 100,000 shares, issued 85,000 shares, in treasury 7,500 shares - 4,250,000 12% Preference shares, par 75, authorized 50,000 shares, issued 20,000 shares, in treasury 4,000 shares - 1,500,000 ● Share premium in excess of par -> 862,500 Reserve for Treasury shares - 725,000 Treasury ordinary shares - 435,000; Treasury preference shares - 290,000 Retained earnings, unrestricted - 2,168,000 Net income for the year - 762,000 Cash dividends declared - 194,000; 2 years in arrears, current year is not yet included
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
4. How much is the
Transcribed Image Text:4. How much is the TOTAL RESERVES? *
On December 31, 2021, the statement of financial position of FRUITS Company showed the
following shareholders' equity accounts:
• Ordinary shares, par P50, authorized 100,000 shares, issued 85,000 shares, in treasury
7,500 shares - P 4,250,000
12% Preference shares, par P75, authorized 50,000 shares, issued 20,000 shares, in
treasury 4,000 shares - P 1,500,000
Share premium in excess of par -P 862,500
Reserve for Treasury shares - 725,000
Treasury ordinary shares - P 435,000; Treasury preference shares - P 290,000
Retained earnings, unrestricted - P 2,168,000
Net income for the year - P 762,000
Cash dividends declared - P 194,000; 2 years in arrears, current year is not yet included
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education