Haru Corporation reported the following shareholders’ equity on January 1, 2020. > Ordinary Share Capital- P1,500,000 > Ordinary share Premium- P3,000,000 > Retained Earnings- P2,000,000 The corporation had 400,000 authorized shares of P 5 par value, of which 300,000 shares were issued and outstanding. On March 1, 2020, Haru Corporation acquired 50,000 shares for P10 per share to be held as treasury. These shares were originally issued at P8 per share. On December 31, 2020, the corporation declared and distributed property dividend with a carrying value of P750,000 and a P1,000,000 fair value. The net income for 2020 was P 2,500,000. What amount should be reported as Unappropriated Retained Earnings on December 31, 2020?
Haru Corporation reported the following shareholders’ equity on January 1, 2020. > Ordinary Share Capital- P1,500,000 > Ordinary share Premium- P3,000,000 > Retained Earnings- P2,000,000 The corporation had 400,000 authorized shares of P 5 par value, of which 300,000 shares were issued and outstanding. On March 1, 2020, Haru Corporation acquired 50,000 shares for P10 per share to be held as treasury. These shares were originally issued at P8 per share. On December 31, 2020, the corporation declared and distributed property dividend with a carrying value of P750,000 and a P1,000,000 fair value. The net income for 2020 was P 2,500,000. What amount should be reported as Unappropriated Retained Earnings on December 31, 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Haru Corporation reported the following shareholders’ equity on January 1, 2020.
> Ordinary Share Capital- P1,500,000
> Ordinary share Premium- P3,000,000
> Retained Earnings - P2,000,000
The corporation had 400,000 authorized shares of P 5 par value, of which 300,000 shares were issued and outstanding. On March 1, 2020, Haru Corporation acquired 50,000 shares for P10 per share to be held as treasury. These shares were originally issued at P8 per share. On December 31, 2020, the corporation declared and distributed property dividend with a carrying value of P750,000 and a P1,000,000 fair value. The net income for 2020 was P 2,500,000. What amount should be reported as Unappropriated Retained Earnings on December 31, 2020?
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
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