At the beginning of the current year, ABC Co. reported P1,750,000 of appropriated retained earnings for the construction of the new building which was completed late in the current year. For the current year, P1,200,000 was appropriated for plant expansion. P1,500,000 cash was restricted for the retirement of bonds payable. Also, the company acquired treasury shares for a total cost of P500,000. On December 31 of the current year, the entity should report appropriated retained earnings of

At the beginning of the current year, ABC Co. reported P1,750,000 of appropriated retained earnings for the construction of the new building which was completed late in the current year. For the current year, P1,200,000 was appropriated for plant expansion. P1,500,000 cash was restricted for the retirement of bonds payable. Also, the company acquired treasury shares for a total cost of P500,000. On December 31 of the current year, the entity should report appropriated retained earnings of

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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The third year of a construction project of SMDC began with a P3,000,000 balance in construction in progress. Included in that figure is P500,000 of interest capitalized in the first two years. Construction expenditures during the third year were P10,000,000 which were incurred evenly throughout the entire year. The entity had P30,000,000 in interest bearing debt outstanding in the third year at an interest rate of 9%. What amount of interest for the third year is capitalized as cost of the construction project? A. 900,000 B. 450,000 C. 720,000 D. 675,000 1) On January 1, 2022 Minito Corporation construction of homes for those families that were hit by the tsunami disaster and were homeless. The contraction expected to take 3.5 years. It is being financed by issuance of bonds for P7,000,000 at 12% per annum. The bonds were issued at the beginning of the construction. The bonds carry a 1.5% issuance cost. The project is also financed by issuance of P3 million share capital with a 14%…
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Required information [The following information applies to the questions displayed below.] Lone Star Company is a calendar-year corporation, and this year Lone Star reported $148,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $17,760. Lone Star declared $44,400 in cash distributions on each of the following dates: April 1, July 1, October 1, and December 31. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. b. Suppose that Matt owned all Lone Star's shares at the beginning of the year and sold half of the shares to Chris on June 1st for $59,200. How much dividend income will Matt recognize this year? Dividend recognized
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