The shareholders' equity of ABC Company on January 1, 2020 contained the following: Share capital (250,000 shares authorized, 100,0000 shares issued and outstanding), P3,000,000 Share premium, P4,000,000 Retained earnings, P8,000,000 ABC's board of directors declared a 10% stock dividend on April 1, 2020 when market value of the share was P70. The stock dividend was issued on July 1, 2020 when market value of the share was P100. ABC's share has a par value of P30. ABC sustained a net loss of P1,200,000 for 2020. What amount should ABC report as retained earnings as of December 31, 2020? (Round answer to whole number)
The shareholders' equity of ABC Company on January 1, 2020 contained the following: Share capital (250,000 shares authorized, 100,0000 shares issued and outstanding), P3,000,000 Share premium, P4,000,000 Retained earnings, P8,000,000 ABC's board of directors declared a 10% stock dividend on April 1, 2020 when market value of the share was P70. The stock dividend was issued on July 1, 2020 when market value of the share was P100. ABC's share has a par value of P30. ABC sustained a net loss of P1,200,000 for 2020. What amount should ABC report as retained earnings as of December 31, 2020? (Round answer to whole number)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The shareholders' equity of ABC Company on January 1, 2020 contained the following:
Share capital (250,000 shares authorized, 100,0000 shares issued and outstanding), P3,000,000
Share premium, P4,000,000
Retained earnings, P8,000,000
ABC's board of directors declared a 10% stock dividend on April 1, 2020 when market value of the share was P70. The stock dividend was issued on July 1, 2020 when market value of the share was P100. ABC's share has a par value of P30. ABC sustained a net loss of P1,200,000 for 2020. What amount should ABC report as retained earnings as of December 31, 2020? (Round answer to whole number)
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