Tania Company's stockholders' equity section of its December 31, 2019 balance sheet was as follows: • Common stock authorized 100,000 shares; issued 60,000 shares, P100 par, P6,000,000 • Additional paid-in capital, P3,000,000 • Retained earnings, P4,000,000 • Treasury stock, 10,000 shares at cost, P900,000 During 2020 Tania reissued 3,000 shares of the treasury stock at P120 per share. The net income for the year is P829,040 and declared 5% cash dividends. Tania voluntarily restricts the third P250,000 installment for its future long-term asset acquisition. Determine the total balance of retained earnings (unrestricted) by the end of the year 2020.
Tania Company's stockholders' equity section of its December 31, 2019 balance sheet was as follows: • Common stock authorized 100,000 shares; issued 60,000 shares, P100 par, P6,000,000 • Additional paid-in capital, P3,000,000 • Retained earnings, P4,000,000 • Treasury stock, 10,000 shares at cost, P900,000 During 2020 Tania reissued 3,000 shares of the treasury stock at P120 per share. The net income for the year is P829,040 and declared 5% cash dividends. Tania voluntarily restricts the third P250,000 installment for its future long-term asset acquisition. Determine the total balance of retained earnings (unrestricted) by the end of the year 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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29. Tania Company's
• Common stock authorized 100,000 shares; issued 60,000 shares, P100 par, P6,000,000
• Additional paid-in capital, P3,000,000
• Retained earnings, P4,000,000
•
During 2020 Tania reissued 3,000 shares of the treasury stock at P120 per share. The net income for the year is P829,040 and declared 5% cash dividends. Tania voluntarily restricts the third P250,000 installment for its future long-term asset acquisition. Determine the total balance of retained earnings (unrestricted) by the end of the year 2020.
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