At the beginning of the current year, BFAR Company had Accumulated Profits of P4,000,000. During the year, the entity reported a net income of P2,000,000. . The entity declared a cash dividend of P1,200,000. Declared and issued small share dividends of 60,000 shares with a par value of P10 par when the fair market value was P20 Compute the balance of Accumulated Profits for dividends at the end of the current year. ● .

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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At the beginning of the current year, BFAR Company had Accumulated Profits of P4,000,000.
During the year, the entity reported a net income of P2,000,000.
The entity declared a cash dividend of P1,200,000.
. Declared and issued small share dividends of 60,000 shares with a par value of P10 par when the fair market value was P20.
Compute the balance of Accumulated Profits for dividends at the end of the current year.
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Transcribed Image Text:At the beginning of the current year, BFAR Company had Accumulated Profits of P4,000,000. During the year, the entity reported a net income of P2,000,000. The entity declared a cash dividend of P1,200,000. . Declared and issued small share dividends of 60,000 shares with a par value of P10 par when the fair market value was P20. Compute the balance of Accumulated Profits for dividends at the end of the current year. ● ●
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