December 31, 2013, Melissa Company showed shareholders' canny of P5,000,000. The share capital of P3,000,000 remained unchanged during the year. Transactions during the year which affected the equity were: An adjustment of retained earnings for 2012 over-depreciation - 100,000; Gain on sale of treasury shares - 300,000; Dividend declared, of which P400,000 was paid - 600,000; Net income for 2013 - 800,000. What is the balance of retained earnings on January 1, 2013?
December 31, 2013, Melissa Company showed shareholders' canny of P5,000,000. The share capital of P3,000,000 remained unchanged during the year. Transactions during the year which affected the equity were: An adjustment of retained earnings for 2012 over-depreciation - 100,000; Gain on sale of treasury shares - 300,000; Dividend declared, of which P400,000 was paid - 600,000; Net income for 2013 - 800,000. What is the balance of retained earnings on January 1, 2013?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
December 31, 2013, Melissa Company showed shareholders' canny of P5,000,000. The share capital of P3,000,000 remained unchanged during the year. Transactions during the year which affected the equity were: An adjustment of
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
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