The balance in the retained earnings account of Indigo Corporation was P450,000 at December 31, 2021. During 2022, the company had the following transactions: - Acquired 5,000 shares of treasury stock at P70 per share. The stock had a par value of P50 and had originally been issued for P65 per share. There had been no previous treasury stock transactions. - Net income of P400,000 was earned in 2022. - Sold the 5,000 shares of treasury stock at P80 per share. The company uses the cost method of accounting for treasury stock, what is the balance in total retained earnings at December 31, 2022?
The balance in the retained earnings account of Indigo Corporation was P450,000 at December 31, 2021. During 2022, the company had the following transactions: - Acquired 5,000 shares of treasury stock at P70 per share. The stock had a par value of P50 and had originally been issued for P65 per share. There had been no previous treasury stock transactions. - Net income of P400,000 was earned in 2022. - Sold the 5,000 shares of treasury stock at P80 per share. The company uses the cost method of accounting for treasury stock, what is the balance in total retained earnings at December 31, 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The balance in the
- Acquired 5,000 shares of
- Net income of P400,000 was earned in 2022.
- Sold the 5,000 shares of treasury stock at P80 per share.
The company uses the cost method of accounting for treasury stock, what is the balance in total retained earnings at December 31, 2022?
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