Co. has 260,000 outstanding (P10 par) ordinary shares and retained earnings balance of P1,780,000 or vear, Bernie acquired 2,000 treasury shares at P18 per share and reissued them at P22 before year-end 0 in 20x1. On December 31, 20x1, Bernie declared P8 cash dividends per share and "1-for-20" stock d on February 1, 20x2. The fair value per share on December 31, 20x1 was P22. What amount of retained ecember 31, 20x1?
Co. has 260,000 outstanding (P10 par) ordinary shares and retained earnings balance of P1,780,000 or vear, Bernie acquired 2,000 treasury shares at P18 per share and reissued them at P22 before year-end 0 in 20x1. On December 31, 20x1, Bernie declared P8 cash dividends per share and "1-for-20" stock d on February 1, 20x2. The fair value per share on December 31, 20x1 was P22. What amount of retained ecember 31, 20x1?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%

Transcribed Image Text:Bernie Bird Co. has 260,000 outstanding (P10 par) ordinary shares and retained earnings balance of P1,780,000 on January 1, 20x1.
During the year, Bernie acquired 2,000 treasury shares at P18 per share and reissued them at P22 before year-end. Bernie earned profit
of P2,260,000 in 20x1. On December 31, 20x1, Bernie declared P8 cash dividends per share and "1-for-20" stock dividends, both to be
distributed on February 1, 20x2. The fair value per share on December 31, 20x1 was P22. What amount of retained earnings should Berni
report on December 31, 20x1?
O 1,674,000
O 1,642,000
O 1,582,000
O 1,682,000
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education