Aboitiz Corporation has the ff info in their shareholders' equity section on January 1, 2011: Preference stock capital (USD150 par value, 20,000 shares) USD3,000,000 Ordinary stock capital (USD50 par value, 100,000 shares) 5,000,000 Share premium USD6,000,000 Retained earnings USD4,500,000 Aboitiz Corporation sold 20,000 additional shares of ordinary stock for USD90 per share on January 1, 2011. However, it wasn't until late in 2011 that it was discovered that an error had resulted in a USD500,000 understatement of depreciation expense in 2005. In 2011, Aboitiz Corporation reported a net income of USD4,000,000. During 2011, the company also declared a cash dividend of USD1,000,000 on preference shares and USD2,000,000 on ordinary shares. Determine what should the retained earnings be at December 31, 2011?
Aboitiz Corporation has the ff info in their shareholders' equity section on January 1, 2011:
Preference stock capital (USD150 par value, 20,000 shares) USD3,000,000
Ordinary stock capital (USD50 par value, 100,000 shares) 5,000,000
Share premium USD6,000,000
Aboitiz Corporation sold 20,000 additional shares of ordinary stock for USD90 per share on January 1, 2011. However, it wasn't until late in 2011 that it was discovered that an error had resulted in a USD500,000 understatement of
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