At January 1,2019, the Retained Earnings account has a balance of P 2,500,000. During the year, a 15% bonus issue was declared on its ordinary shares with a total par value of P 5,000,000 ( 50,000 shares outstanding). The fair value of each ordinary share on the date of declaration is P 120 and on the date of payment, P 125. Also, during the year, it was discovered that the depreciation expense charged for the year 2018 was P 300,000 instead of P 150,000 only. Corporate income tax is 30%. Treasury shares costing P 20,000 were also reacquired and it was noted that from the balance of Retained Earnings at the end of the year, the board of directors will appropriate 10% for the purpose of future expansion. Profit for the year 2019 was P 1,500,000. What are the balance of the Retained Earnings-Appropriated and Unappropriated at December 31,2019?

At January 1,2019, the Retained Earnings account has a balance of P 2,500,000. During the year, a 15% bonus issue was declared on its ordinary shares with a total par value of P 5,000,000 ( 50,000 shares outstanding). The fair value of each ordinary share on the date of declaration is P 120 and on the date of payment, P 125. Also, during the year, it was discovered that the depreciation expense charged for the year 2018 was P 300,000 instead of P 150,000 only. Corporate income tax is 30%. Treasury shares costing P 20,000 were also reacquired and it was noted that from the balance of Retained Earnings at the end of the year, the board of directors will appropriate 10% for the purpose of future expansion. Profit for the year 2019 was P 1,500,000. What are the balance of the Retained Earnings-Appropriated and Unappropriated at December 31,2019?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

At January 1,2019, the Retained Earnings
account has a balance of P 2,500,000. During
the year, a 15% bonus issue was declared on
its ordinary shares with a total par value of P
5,000,000 ( 50,000 shares outstanding). The
fair value of each ordinary share on the date
of declaration is P 120 and on the date of
payment, P 125. Also, during the year, it was
discovered that the depreciation expense
charged for the year 2018 was P 300,000
instead of P 150,000 only. Corporate income
tax is 30%. Treasury shares costing P 20,000
were also reacquired and it was noted that
from the balance of Retained Earnings at the
end of the year, the board of directors will
appropriate 10% for the purpose of future
expansion. Profit for the year 2019 was P
1,500,000. What are the balance of the
Retained Earnings-Appropriated and
Unappropriated at December 31,2019?

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