Problem 28-4 (ACP) Icon Company provided the following balances at the end of the current year: 20,000,000 2,500,000 Wasting asset, at cost Accumulated depletion Share capital Capital liquidated Retained earnings 50,000,000 1,800,000 1,500,000 1,000,000 Depletion based on 50,000 units at P20 per unit Inventory of resource deposit (5,000 units) 400,000 Required: a. Compute the maximum dividend that can be declared. b. Prepare journal entry to record the declaration of P2,000,000 dividend.
Problem 28-4 (ACP) Icon Company provided the following balances at the end of the current year: 20,000,000 2,500,000 Wasting asset, at cost Accumulated depletion Share capital Capital liquidated Retained earnings 50,000,000 1,800,000 1,500,000 1,000,000 Depletion based on 50,000 units at P20 per unit Inventory of resource deposit (5,000 units) 400,000 Required: a. Compute the maximum dividend that can be declared. b. Prepare journal entry to record the declaration of P2,000,000 dividend.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please kindly show the computation
Transcribed Image Text:Problem 28-4 (ACP)
Icon Company provided the following balances at the end of
the current year:
20,000,000
2,500,000
Wasting asset, at cost
Accumulated depletion
Share capital
Capital liquidated
Retained earnings
50,000,000
1,800,000
1,500,000
1,000,000
Depletion based on 50,000 units at P20 per unit
Inventory of resource deposit (5,000 units)
400,000
Required:
a. Compute the maximum dividend that can be declared.
b. Prepare journal entry to record the declaration of
P2,000,000 dividend.
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