Doffy Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2020, the retained earnings amounted to P 3,000,000. In March 2016, the entity reacquired 50,000 treasury shares at P 20 per share. In June 2020, the entity sold 10,000 of these shares to corporate officers for P25 per share. The entity used the cost method to record treasury shares. Net income for the year ended December 31, 2020 was P600,000. What amount should be reported as unappropriated retained earnings at year-end?
Doffy Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2020, the retained earnings amounted to P 3,000,000. In March 2016, the entity reacquired 50,000 treasury shares at P 20 per share. In June 2020, the entity sold 10,000 of these shares to corporate officers for P25 per share. The entity used the cost method to record treasury shares. Net income for the year ended December 31, 2020 was P600,000. What amount should be reported as unappropriated retained earnings at year-end?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Doffy Company issued 200,000 shares of P5 par value at P10 per share. On January 1, 2020, the
earnings
In March 2016, the entity reacquired 50,000 treasury shares at P 20 per share. In June 2020, the entity sold
10,000 of these shares to corporate officers for P25 per share. The entity used the cost method to record treasury
shares.
Net income for the year ended December 31, 2020 was P600,000.
What amount should be reported as unappropriated retained earnings at year-end?
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