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On December 31, 2020, the board of directors of Osaka Company declared a cash dividend of P800,000 to shareholders of record on January 15, 2021, and payable on February 15, 2021. The entity reported the following data on December 31, 2020, before the declaration of dividend: Accumulated depletion (yet unrealized buried in inventory), P500,000 Share capital, 9,000,000 Share premium, 300,000 Retained earnings – January 1, 2020, 600,000 Net Income for 2020, 150,000 What amount should be reported as liquidating dividend?

On December 31, 2020, the board of directors of Osaka Company declared a cash dividend of P800,000 to shareholders of record on January 15, 2021, and payable on February 15, 2021. The entity reported the following data on December 31, 2020, before the declaration of dividend: Accumulated depletion (yet unrealized buried in inventory), P500,000 Share capital, 9,000,000 Share premium, 300,000 Retained earnings – January 1, 2020, 600,000 Net Income for 2020, 150,000 What amount should be reported as liquidating dividend?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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22. On December 31, 2020, the board of directors of Osaka Company declared a cash dividend of P800,000 to shareholders of record on January 15, 2021, and payable on February 15, 2021. The entity reported the following data on December 31, 2020, before the declaration of dividend: Accumulated depletion (yet unrealized buried in inventory), P500,000 Share capital, 9,000,000 Share premium, 300,000 Retained earnings – January 1, 2020, 600,000 Net Income for 2020, 150,000 What amount should be reported as liquidating dividend?

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