On January 1, 2017, an entity reported the following shareholders' equity Share capital, 100,000 shares authorized, 50,000 shares outstamding, P100 par        5,000,000 Share premium     4,000,000 Retained earnings           5,000,000 The BOD declared a 10% stock dividend on July 1, 2017, when the market value of the share was P150. the stock dividend was issued on October 1, 2017 when the market value of the share was P180. The entity sustained a net loss of P1,500,000 for 2017. What amount should be reported as retained earnings on December 31, 2017?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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What amount should be reported as retained earnings on December 31, 2017?

On January 1, 2017, an entity reported the following shareholders' equity
Share capital, 100,000 shares authorized, 50,000 shares outstamding, P100 par        5,000,000
Share premium     4,000,000
Retained earnings           5,000,000
The BOD declared a 10% stock dividend on July 1, 2017, when the market value of the share was P150. the stock dividend was issued on October 1, 2017 when the market value of the share was P180. The entity sustained a net loss of P1,500,000 for 2017. What amount should be reported as retained earnings on December 31, 2017?

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