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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

4. How much is the TOTAL RESERVES?

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
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
steps

Step by step

Solved in 3 steps

Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education