21.Neptuna Company operated in hyperinflationary economy and provided the followinginformation on December 31, 2019:Property, plant and equipment900,000Inventory2,700,000Cash350,000Share Capital issued on December 31,2015400,000Noncurrent liabilities500,000Current liabilities700,000Retained earnings2,350,000The index number had moved on December 31 of each year: 2015 – 100, 2016 – 130, 2017 –150, 2018 - 240 and 2019 – 300. The property, plant and equipment were purchased omDecember 31, 2017. The noncurrent liabilities were loans raised on December 31, 2018. What isthe balance of retained earnings on December 31, 2019 after adjusting for hyperinflation? a.2,350,000b. 2,750,000c. 3,550,000d. 2,625,000

Retained Earnings-: Retained earnings imply the quantity of the revenue left with the firm after the…

Property, plant and equipment 900,000 Inventory 2,700,000 Cash 350,000 Share Capital issued on December 31,2015 400,000 Noncurrent liabilities 500,000 Current liabilities 700,000 Retained earnings 2,350,000

Property, plant and equipment 900,000 Inventory 2,700,000 Cash 350,000 Share Capital issued on December 31,2015 400,000 Noncurrent liabilities 500,000 Current liabilities 700,000 Retained earnings 2,350,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

21.Neptuna Company operated in hyperinflationary economy and provided the following
information on December 31, 2019:
Property, plant and equipment
900,000
Inventory
2,700,000
Cash
350,000
Share Capital issued on December 31,2015
400,000
Noncurrent liabilities
500,000
Current liabilities
700,000
Retained earnings
2,350,000
The index number had moved on December 31 of each year: 2015 – 100, 2016 – 130, 2017 –
150, 2018 - 240 and 2019 – 300. The property, plant and equipment were purchased om
December 31, 2017. The noncurrent liabilities were loans raised on December 31, 2018. What is
the balance of retained earnings on December 31, 2019 after adjusting for hyperinflation? a.
2,350,000
b. 2,750,000
c. 3,550,000
d. 2,625,000

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