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The following information was taken from the accounts of JT Corp at year end: Total income since incorporation     P900,000 Total cash dividends paid                  P260,000 Proceeds from sale of donated shares  P  90,000 Total value of share dividends distributed    P60,000 Excess of proceeds over cost of treasury stocks sold    P140,000 What should be the current balance of retained earnings? a. P780,000 b. P520,000 c. P720,000 d. P580,000

The following information was taken from the accounts of JT Corp at year end: Total income since incorporation     P900,000 Total cash dividends paid                  P260,000 Proceeds from sale of donated shares  P  90,000 Total value of share dividends distributed    P60,000 Excess of proceeds over cost of treasury stocks sold    P140,000 What should be the current balance of retained earnings? a. P780,000 b. P520,000 c. P720,000 d. P580,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. The following information was taken from the accounts of JT Corp at year end:
Total income since incorporation     P900,000
Total cash dividends paid                  P260,000
Proceeds from sale of donated shares  P  90,000
Total value of share dividends distributed    P60,000
Excess of proceeds over cost of treasury stocks sold    P140,000
What should be the current balance of retained earnings?

a. P780,000
b. P520,000
c. P720,000
d. P580,000

2.  see image
choices: 
a. 176,000
b. 263,000
c. 204,000
d. 321,000

The shareholders' equity of Rockets Corporation at the end of 2020 and 2019 are as follows: 2020 P2,630,000 2019 P 870,000 Ordinary Share Capital, P 10 par 12% Preference Share Capital, P 40 par Ordinary Share Premium 2,008,720 1,026,000 580,000 300,000 Preference Share Premium 322,128 123,000 Retained Earnings 5,640,000 3,920,000
Transcribed Image Text:The shareholders' equity of Rockets Corporation at the end of 2020 and 2019 are as follows: 2020 P2,630,000 2019 P 870,000 Ordinary Share Capital, P 10 par 12% Preference Share Capital, P 40 par Ordinary Share Premium 2,008,720 1,026,000 580,000 300,000 Preference Share Premium 322,128 123,000 Retained Earnings 5,640,000 3,920,000
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