On January 1, 2023, Flips Company is authorized to issue 100,000 P100 par value ordinary shares. The following transactions occurred during 2023: January 1 Issued 40,000 ordinary shares at P130 per share. February 1 Issued 30,000 ordinary for the following assets: Machine 500,000 Fair value Land - None Building 1,100,000 Fair value Ordinary shares P120 Fair value July 1 Purchased 10,000 ordinary shares at P150 per share to be held as treasury. August 1 Declared a 2 for 1 split. September 15 Reissued 5,000 treasury shares at P100 per share December 31 Declared a P10 per share cash dividend on the ordinary shares. December 31 Net income for the year is P3,000,000. What is the balance of retained earnings at year-end? Group of answer choices 3,000,000 1,600,000 1,750,000 1,800,000
On January 1, 2023, Flips Company is authorized to issue 100,000 P100 par value ordinary shares. The following transactions occurred during 2023: January 1 Issued 40,000 ordinary shares at P130 per share. February 1 Issued 30,000 ordinary for the following assets: Machine 500,000 Fair value Land - None Building 1,100,000 Fair value Ordinary shares P120 Fair value July 1 Purchased 10,000 ordinary shares at P150 per share to be held as treasury. August 1 Declared a 2 for 1 split. September 15 Reissued 5,000 treasury shares at P100 per share December 31 Declared a P10 per share cash dividend on the ordinary shares. December 31 Net income for the year is P3,000,000. What is the balance of retained earnings at year-end? Group of answer choices 3,000,000 1,600,000 1,750,000 1,800,000
On January 1, 2023, Flips Company is authorized to issue 100,000 P100 par value ordinary shares. The following transactions occurred during 2023: January 1 Issued 40,000 ordinary shares at P130 per share. February 1 Issued 30,000 ordinary for the following assets: Machine 500,000 Fair value Land - None Building 1,100,000 Fair value Ordinary shares P120 Fair value July 1 Purchased 10,000 ordinary shares at P150 per share to be held as treasury. August 1 Declared a 2 for 1 split. September 15 Reissued 5,000 treasury shares at P100 per share December 31 Declared a P10 per share cash dividend on the ordinary shares. December 31 Net income for the year is P3,000,000. What is the balance of retained earnings at year-end? Group of answer choices 3,000,000 1,600,000 1,750,000 1,800,000
Use the following information for the next four (4) questions:
On January 1, 2023, Flips Company is authorized to issue 100,000 P100 par value ordinary shares. The following transactions occurred during 2023:
January 1
Issued 40,000 ordinary shares at P130 per share.
February 1
Issued 30,000 ordinary for the following assets:
Machine
500,000
Fair value
Land
-
None
Building
1,100,000
Fair value
Ordinary shares
P120
Fair value
July 1
Purchased 10,000 ordinary shares at P150 per share to be held as treasury.
August 1
Declared a 2 for 1 split.
September 15
Reissued 5,000 treasury shares at P100 per share
December 31
Declared a P10 per share cash dividend on the ordinary shares.
December 31
Net income for the year is P3,000,000.
What is the balance of retained earnings at year-end?
Group of answer choices
3,000,000
1,600,000
1,750,000
1,800,000
Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.
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