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Kenneth Company was organized on January 1, 2015 at which date it issued 100,000 common stock of P10 par value at P15 per share. During the period January 1, 2015 through December 31, 2015, Kenneth reported net income of P450,000 and paid cash dividend of P230,000. On January 10, 2015, Kenneth purchased 6,000 treasury shares at P12 per share. On December 31, 2015, Kenneth sold 4,000 shares at P8 per share and retired the remaining treasury shares. Kenneth uses the cost method of accounting for treasury shares. What is the total stockholders’ equity at December 31, 2015?   A. 1,720,000 B. 1,704,000 C. 1,688,000 D. 1,680,000

Kenneth Company was organized on January 1, 2015 at which date it issued 100,000 common stock of P10 par value at P15 per share. During the period January 1, 2015 through December 31, 2015, Kenneth reported net income of P450,000 and paid cash dividend of P230,000. On January 10, 2015, Kenneth purchased 6,000 treasury shares at P12 per share. On December 31, 2015, Kenneth sold 4,000 shares at P8 per share and retired the remaining treasury shares. Kenneth uses the cost method of accounting for treasury shares. What is the total stockholders’ equity at December 31, 2015?   A. 1,720,000 B. 1,704,000 C. 1,688,000 D. 1,680,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kenneth Company was organized on January 1, 2015 at which date it issued 100,000 common stock of P10 par value at P15 per share. During the period January 1, 2015 through December 31, 2015, Kenneth reported net income of P450,000 and paid cash dividend of P230,000. On January 10, 2015, Kenneth purchased 6,000 treasury shares at P12 per share. On December 31, 2015, Kenneth sold 4,000 shares at P8 per share and retired the remaining treasury shares. Kenneth uses the cost method of accounting for treasury shares. What is the total stockholders’ equity at December 31, 2015?
 
A. 1,720,000
B. 1,704,000
C. 1,688,000
D. 1,680,000
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