At the beginning of current year, Axed Company was authorized to issue share capital of 100,000 shares with P30 par value. Axed had the following share capital transactions during the year: January 1 Issued 80,000 shares at P70 per share May 1 Reacquired 4,000 treasury shares at P65 per share July 1 Approved a share split of 5 for 1 October 31 Issued a 10% share dividend when the market value of a share is P25 December 31 Reissued all of the treasury shares at P35 December 31 Net income for the year was P4,500,000. What amount of retained earnings should be reported at year-end? Group of answer choices 3,550,000 4,500,000 3,430,000 2,950,000
At the beginning of current year, Axed Company was authorized to issue share capital of 100,000 shares with P30 par value. Axed had the following share capital transactions during the year: January 1 Issued 80,000 shares at P70 per share May 1 Reacquired 4,000 treasury shares at P65 per share July 1 Approved a share split of 5 for 1 October 31 Issued a 10% share dividend when the market value of a share is P25 December 31 Reissued all of the treasury shares at P35 December 31 Net income for the year was P4,500,000. What amount of retained earnings should be reported at year-end? Group of answer choices 3,550,000 4,500,000 3,430,000 2,950,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use the following information for the next three (3) questions:
At the beginning of current year, Axed Company was authorized to issue share capital of 100,000 shares with P30 par value. Axed had the following share capital transactions during the year:
|
January |
1 |
Issued 80,000 shares at P70 per share |
|
May |
1 |
Reacquired 4,000 treasury shares at P65 per share |
|
July |
1 |
Approved a share split of 5 for 1 |
|
October |
31 |
Issued a 10% share dividend when the market value of a share is P25 |
|
December |
31 |
Reissued all of the treasury shares at P35 |
|
December |
31 |
Net income for the year was P4,500,000. |
- What amount of
retained earnings should be reported at year-end?
Group of answer choices
3,550,000
4,500,000
3,430,000
2,950,000
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