The shareholders’ equity section of Haemul Pajeon Co. as of Dec. 31, 2019, contained the ff. accounts: Ordinary share, 25,000 shares authorized, 10,000 shares outstanding. P 30,000 Capital contributed in excess of par 40,000 Retained earnings 80,000 Haemul Pajeon’s board of directors declared a 10% bonus issue on April 1, 2020, when the market value of the share was P7 per share. Accordingly, 1,000 new shares were issued. Haemul Pajeon’s entire share has a par value of P3. Assuming Haemul Pajeon sustained a net loss of P12,000 for the quarter ended March 31, 2020, what amount shall be reported as retained earnings on April 1, 2020? a. P60,000 b. P64,000 c. P68,000 d. P73,000
The shareholders’ equity section of Haemul Pajeon Co. as of Dec. 31, 2019, contained the ff. accounts:
Ordinary share, 25,000 shares authorized, 10,000 shares outstanding. P 30,000
Capital contributed in excess of par 40,000
Haemul Pajeon’s board of directors declared a 10% bonus issue on April 1, 2020, when the market value of the share was P7 per share. Accordingly, 1,000 new shares were issued. Haemul Pajeon’s entire share has a par value of P3. Assuming Haemul Pajeon sustained a net loss of P12,000 for the quarter ended March 31, 2020, what amount shall be reported as retained earnings on April 1, 2020?
a. P60,000
b. P64,000
c. P68,000
d. P73,000
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