The following information pertains to Mikhail Corporation for the year ended December 31, 20Y1: Accumulated profits, January 1, 20Y1 Net income for 20Y1 Cash dividends declared December 1, 20Y1 and distributable on January 10, 20Y2 Share dividends declared November 25, 20Y1 and distributed on December 15, 20Y1 P1,500,000 800,000 190,000 170,000
The following information pertains to Mikhail Corporation for the year ended December 31, 20Y1: Accumulated profits, January 1, 20Y1 Net income for 20Y1 Cash dividends declared December 1, 20Y1 and distributable on January 10, 20Y2 Share dividends declared November 25, 20Y1 and distributed on December 15, 20Y1 P1,500,000 800,000 190,000 170,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Case 3. Accumulated Profits
The following information pertains to Mikhail Corporation for the year ended
December 31, 20Y1:
Accumulated profits, January 1, 20Y1
Net income for 20Y1
Cash dividends declared December 1, 20Y1 and
distributable on January 10, 20Y2
Share dividends declared November 25, 20Y1 and
distributed on December 15, 20Y1
P1,500,000
800,000
190,000
170,000
Required:
a. What is the balance of the Accumulated Profits account as of December 31,
20Y1?
b. If the year-end balance of the Accumulated Profits account is not appropriated,
can the total amount of this account be declared as dividends the following
year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14c3a5ff-416e-4416-8311-06e46b7c5199%2F49c4189e-feaf-43ad-9f3b-18c7fdb6f23a%2Flntgwps_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Case 3. Accumulated Profits
The following information pertains to Mikhail Corporation for the year ended
December 31, 20Y1:
Accumulated profits, January 1, 20Y1
Net income for 20Y1
Cash dividends declared December 1, 20Y1 and
distributable on January 10, 20Y2
Share dividends declared November 25, 20Y1 and
distributed on December 15, 20Y1
P1,500,000
800,000
190,000
170,000
Required:
a. What is the balance of the Accumulated Profits account as of December 31,
20Y1?
b. If the year-end balance of the Accumulated Profits account is not appropriated,
can the total amount of this account be declared as dividends the following
year?
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