The ledger of DIVA Co. shows the follow data:Retained EarningsDateParticularsDebitCredit01/01/2012Balance 40,30006/30/2012Dividends paid12,500 12/31/2012Net income for 2012 21,25002/07/2013Premium on share capital 5,00004/30/2013Loss on sale of land2,500 09/30/2013Dividends paid10,000 12/31/2013Net income for 2013 2,90012/31/2013Revaluation surplus 20,00007/01/2014Gain on sale of treasury stock 80012/31/2014Net income 2014 16,850 Unrealized loss on FVOCI securities1,700 Compute for the correct balance of Retained Earnings on December 31, 2014.

Retained earnings: These are defined as the residual or leftover earnings of the business after…

Answered: The ledger of DIVA Co. shows the follow…

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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The ledger of DIVA Co. shows the follow data:

Retained Earnings

Date	Particulars	Debit	Credit
01/01/2012	Balance		40,300
06/30/2012	Dividends paid	12,500
12/31/2012	Net income for 2012		21,250
02/07/2013	Premium on share capital		5,000
04/30/2013	Loss on sale of land	2,500
09/30/2013	Dividends paid	10,000
12/31/2013	Net income for 2013		2,900
12/31/2013	Revaluation surplus		20,000
07/01/2014	Gain on sale of treasury stock		800
12/31/2014	Net income 2014		16,850
	Unrealized loss on FVOCI securities	1,700

Compute for the correct balance of Retained Earnings on December 31, 2014.

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