The equity section of Gunkel Corporation as of December 31, 2021, was as follows: Share capital—ordinary, par value P2; authorized 20,000 shares; issued and outstanding 10,000 shares, P20,000 Share premium—ordinary, P30,000 Retained earnings, P75,000 Total SHE, P125,000 On March 1, 2022, the board of directors declared a 15% share dividend, and accordingly 1,500 additional shares were issued. On March 1, 2022, the fair value of the share was P6 per share. For the two months ended February 28, 2022, Gunkel sustained a net loss of P10,000. What amount should Gunkel report as retained earnings as of March 1, 2022?
The equity section of Gunkel Corporation as of December 31, 2021, was as follows: Share capital—ordinary, par value P2; authorized 20,000 shares; issued and outstanding 10,000 shares, P20,000 Share premium—ordinary, P30,000 Retained earnings, P75,000 Total SHE, P125,000 On March 1, 2022, the board of directors declared a 15% share dividend, and accordingly 1,500 additional shares were issued. On March 1, 2022, the fair value of the share was P6 per share. For the two months ended February 28, 2022, Gunkel sustained a net loss of P10,000. What amount should Gunkel report as retained earnings as of March 1, 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The equity section of Gunkel Corporation as of December 31, 2021, was as follows:
Share capital—ordinary, par value P2; authorized 20,000 shares; issued and outstanding 10,000 shares, P20,000
Share premium—ordinary, P30,000
Total SHE, P125,000
On March 1, 2022, the board of directors declared a 15% share dividend, and accordingly 1,500 additional shares were issued. On March 1, 2022, the fair value of the share was P6 per share. For the two months ended February 28, 2022, Gunkel sustained a net loss of P10,000.
What amount should Gunkel report as retained earnings as of March 1, 2022?
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