The following pretax amounts pertain to Han Ae Sook Company for the year ended December 31, 2020: Sales -P800,000; Distribution and administrative costs - P84,000; Other income – P40,000; Interest expense - P4,000; Cost of goods sold – P480,000; Correction of prior period error (credit) – P16,000; Discontinued operations (debit) – P40,000; Cumulative effect of change in accounting policy (credit) - P28,000; Retained earnings, January 1 (not restated) – P160,000; Dividends declared – P12,000; Income tax rate is 30%. How much retained earnings would be shown on December 31, 2020 statement of financial position? А. Р310,400 В. Р335,600 С. Р341,200 D. P344,800

The following pretax amounts pertain to Han Ae Sook Company for the year ended December 31, 2020: Sales -P800,000; Distribution and administrative costs - P84,000; Other income – P40,000; Interest expense - P4,000; Cost of goods sold – P480,000; Correction of prior period error (credit) – P16,000; Discontinued operations (debit) – P40,000; Cumulative effect of change in accounting policy (credit) - P28,000; Retained earnings, January 1 (not restated) – P160,000; Dividends declared – P12,000; Income tax rate is 30%. How much retained earnings would be shown on December 31, 2020 statement of financial position? А. Р310,400 В. Р335,600 С. Р341,200 D. P344,800

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Question

The following pretax amounts pertain to Han Ae Sook Company for the year ended December 31, 2020:
Sales -P800,000; Distribution and administrative costs – P84,000; Other income - P40,000; Interest
expense - P4,000; Cost of goods sold – P480,000; Correction of prior period error (credit) – P16,000;
Discontinued operations (debit) – P40,000; Cumulative effect of change in accounting policy (credit) –
P28,000; Retained earnings, January 1 (not restated) – P160,000; Dividends declared – P12,000; Income
tax rate is 30%.
How much retained earnings would be shown on December 31, 2020 statement of financial position?
А. Р310,400
В. Р335,600
C. P341,200
D. P344,800

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