total shareholders’ equity on December 31, 2018?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An entity was organized on January 1, 2017. On that date, the entity issued 200,000 shares with P10 par value at P15 per share. During the period January 1, 2017 through December 31, 2018, the entity reported net income of P2,000,000 and paid cash dividends of P500,000. On January 5, 2018, the entity purchased 10,000 shares at P20 per share to be held as treasury. On December 31, 2018, 5,000 treasury shares were sold at P30 per share and the remaining treasury shares were retired. What is the total shareholders’ equity on December 31, 2018?
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