The equity section of JUJI Corporation as of December 31, 2018, was as follows: Share capital—ordinary, par value P20; authorized 20,000 shares; issued and outstanding 10,000 shares P200,000 Share premium—ordinary 300,000 Retained Earnings 750,000 1,250,000 On March 1, 2019, the board of directors declared a 15% share dividend, and accordingly 1,500 additional shares were issued. On March 1, 2019, the fair value of the share was P60 per share. For the two months ended February 28, 2019, JUJI sustained a net loss of P100,000. What amount should JUJI report as retained earnings as of March 1, 2019?
The equity section of JUJI Corporation as of December 31, 2018, was as follows: Share capital—ordinary, par value P20; authorized 20,000 shares; issued and outstanding 10,000 shares P200,000 Share premium—ordinary 300,000 Retained Earnings 750,000 1,250,000 On March 1, 2019, the board of directors declared a 15% share dividend, and accordingly 1,500 additional shares were issued. On March 1, 2019, the fair value of the share was P60 per share. For the two months ended February 28, 2019, JUJI sustained a net loss of P100,000. What amount should JUJI report as retained earnings as of March 1, 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The equity section of JUJI Corporation as of December 31, 2018, was as follows:
Share capital—ordinary, par value P20; authorized 20,000 shares; issued and outstanding 10,000 shares | P200,000 |
Share premium—ordinary | 300,000 |
750,000 | |
1,250,000 |
On March 1, 2019, the board of directors declared a 15% share dividend, and accordingly 1,500 additional shares were issued. On March 1, 2019, the fair value of the share was P60 per share. For the two months ended February 28, 2019, JUJI sustained a net loss of P100,000. What amount should JUJI report as retained earnings as of March 1, 2019?
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