9. Home Co. reported the following amounts in the stockholders’ equity section of its balance sheet dated Dec. 31, 2021: Preference share capital (P150 par value, 20,000 shares) 3,000,000 Ordinary share capital (P37.50 par value, 100,000 shares) 3,750,000 Share premium reserve 6,000,000 Accumulated profits 4,500,000 Treasury stock, at cost (5,000 ordinary shares) 250,000 On January 2, 2022, Home sold 20,000 additional shares of ordinary share for P90 per share. Late in 2022, it was learned that because of mathematical error, an overstatement of depreciation expense by P375,000 had occurred in 2015. Home reported net income of P825,000 for 2022. Home declared cash dividends of P150,000 on preference share and P450,000 on the ordinary share during 2022. All the treasury shares were re-issued for P35 per share on December 31, 2022. What should be the accumulated profits balance on December 31, 2021? Group of answer choices 4,500,000 4,905,000 4,875,000 5,025,000
9.
- Home Co. reported the following amounts in the
stockholders’ equity section of its balance sheet dated Dec. 31, 2021:
Ordinary share capital (P37.50 par value, 100,000 shares) 3,750,000
Share premium reserve 6,000,000
On January 2, 2022, Home sold 20,000 additional shares of ordinary share for P90 per share. Late in 2022, it was learned that because of mathematical error, an overstatement of
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