An entity provided the following data for the year ended December 31, 2015: Retained earnings unappropriated, January 1----------200,000 Overdepreciation of 2014 due to prior period error----------100,000 Net income for 2015----------1,300,000 Retained earnings appropriated for treasury shares (original balance is P500,000 but reduced by P200,000 by reason of reissuance of the treasury shares) ----------300,000 Retained earnings appropriated for contingencies (beginning balance P700,000 but increased by current appropriation of P100,000)----------800,000 Cash dividends paid to shareholders----------500,000 Change in accounting policy from FIFO to average - credit adjustment----------150,000 What is the balance of unappropriated retained earnings on December 31, 2015? a. 1,150,000 b. 1,350,000 c. 1,950,000 d. 1,750,000
An entity provided the following data for the year ended December 31, 2015: Retained earnings unappropriated, January 1----------200,000 Overdepreciation of 2014 due to prior period error----------100,000 Net income for 2015----------1,300,000 Retained earnings appropriated for treasury shares (original balance is P500,000 but reduced by P200,000 by reason of reissuance of the treasury shares) ----------300,000 Retained earnings appropriated for contingencies (beginning balance P700,000 but increased by current appropriation of P100,000)----------800,000 Cash dividends paid to shareholders----------500,000 Change in accounting policy from FIFO to average - credit adjustment----------150,000 What is the balance of unappropriated retained earnings on December 31, 2015? a. 1,150,000 b. 1,350,000 c. 1,950,000 d. 1,750,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An entity provided the following data for the year ended December 31, 2015:
Retained earnings unappropriated, January 1----------200,000
Overdepreciation of 2014 due to prior period error----------100,000
Net income for 2015----------1,300,000
Retained earnings appropriated for treasury shares (original balance is
P500,000 but reduced by P200,000 by reason of reissuance of the treasury shares) ----------300,000
Retained earnings appropriated for contingencies (beginning balance P700,000 but increased by current appropriation of P100,000)----------800,000
Cash dividends paid to shareholders----------500,000
Change in accounting policy from FIFO to average - credit adjustment----------150,000
What is the balance of unappropriated retained earnings on December 31, 2015?
a. 1,150,000
b. 1,350,000
c. 1,950,000
d. 1,750,000
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