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What is the balance of the Retained Earnings- Appropriated at December 31,2019?

What is the balance of the Retained Earnings- Appropriated at December 31,2019?

FINANCIAL ACCOUNTING
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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At January 1,2019, the Retained Earnings account has a balance of P 3,500,000. During the year, a 15% bonus issue was declared on its ordinary shares with a total par value of P 5,000,000 ( 50,000 shares outstanding). The fair value of each ordinary share on the date of declaration is P 120 and on the date of payment, P 125. Also, during the year, it was discovered that the depreciation expense charged for the year 2018 was P 300,000 instead of P 170,000 only. Corporate income tax is 32%. Treasury shares costing P 20,000 were also reacquired and it was noted that from the balance of Retained Earnings at the end of the year, the board of directors will appropriate 20% for the purpose of future expansion. Profit for the year 2019 was P 1,500,000. What is the balance of the Retained Earnings- Appropriated at December 31,2019? * G O P 857,680 O P 857,860 O P 837,680 O P 873,860
Transcribed Image Text:At January 1,2019, the Retained Earnings account has a balance of P 3,500,000. During the year, a 15% bonus issue was declared on its ordinary shares with a total par value of P 5,000,000 ( 50,000 shares outstanding). The fair value of each ordinary share on the date of declaration is P 120 and on the date of payment, P 125. Also, during the year, it was discovered that the depreciation expense charged for the year 2018 was P 300,000 instead of P 170,000 only. Corporate income tax is 32%. Treasury shares costing P 20,000 were also reacquired and it was noted that from the balance of Retained Earnings at the end of the year, the board of directors will appropriate 20% for the purpose of future expansion. Profit for the year 2019 was P 1,500,000. What is the balance of the Retained Earnings- Appropriated at December 31,2019? * G O P 857,680 O P 857,860 O P 837,680 O P 873,860
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