WHAT IS THE TOTAL RESERVES 2021? The following were the balances of shareholders' equity accounts of a particularcompany at January 1, 2021:Share capitalShare premiumRetained earnings7,500,0002,200,0003,000,0002,400,000Cumulative unrealized gain/(loss) on FVOCI investmentsThe following information summarizes the company's operations for the year 2021:RevenuesCost of goods soldEmployee benefit expenseDepreciation and amortizationOther expensesFinance costsPost-tax monetary impact of a correction of prior period errorDividends declared and paid2,000,000850,000100,00040,0002,0004,00035,00020,000Proceeds from the issuance of shares(par value of issued shares is P8 million)Unrealized gain on FVOCI investments during the year(before tax)10,800,00080,000The company's income tax rate is 30%.

Total reserves include Capital Reserve, Retained Earnings, Security Premium, General Reserve, Fair…

Answered: WHAT IS THE TOTAL RESERVES 2021?

Business

Accounting

WHAT IS THE TOTAL RESERVES 2021?

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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Question

WHAT IS THE TOTAL RESERVES 2021?

The following were the balances of shareholders' equity accounts of a particular
company at January 1, 2021:
Share capital
Share premium
Retained earnings
7,500,000
2,200,000
3,000,000
2,400,000
Cumulative unrealized gain/(loss) on FVOCI investments
The following information summarizes the company's operations for the year 2021:
Revenues
Cost of goods sold
Employee benefit expense
Depreciation and amortization
Other expenses
Finance costs
Post-tax monetary impact of a correction of prior period error
Dividends declared and paid
2,000,000
850,000
100,000
40,000
2,000
4,000
35,000
20,000
Proceeds from the issuance of shares
(par value of issued shares is P8 million)
Unrealized gain on FVOCI investments during the year
(before tax)
10,800,000
80,000
The company's income tax rate is 30%.

Definition Definition Capital reserves held by banks or financial institutions over and above the reserves that are required to be maintained by the regulator toward its liabilities and for internal controls. For commercial banks, excess reserve is the amount over the standard reserve as decided by the central bank. These excess reserve funds are available in the form of cash and cash equivalents.

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