On January 1, 2020, ABC Company reported the following shareholders’ equity Share capital, 250,000 shares authorized, 100,000 shares outstanding 5,000,000 Share premium 4,000,000 Retained earnings 5,000,000 The board of directors declared a 10% stock dividend on July 1, 2020, when the market value of the share was P100. The share dividend was issued on October 1, 2020 when the market value of the share was P120. The share has a par value of P50. The entity sustained a net loss of P2,500,000 for 2020. What amount should be reported as retained earnings on December 31, 2020?
On January 1, 2020, ABC Company reported the following shareholders’ equity Share capital, 250,000 shares authorized, 100,000 shares outstanding 5,000,000 Share premium 4,000,000 Retained earnings 5,000,000 The board of directors declared a 10% stock dividend on July 1, 2020, when the market value of the share was P100. The share dividend was issued on October 1, 2020 when the market value of the share was P120. The share has a par value of P50. The entity sustained a net loss of P2,500,000 for 2020. What amount should be reported as retained earnings on December 31, 2020?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 69E:
Stock Dividends
Crystal Corporation has the following information regarding its common stock: S10...
Related questions
Question
100%
On January 1, 2020, ABC Company reported the following shareholders’ equity
|
Share capital, 250,000 shares authorized, 100,000 shares outstanding |
5,000,000 |
|
Share premium |
4,000,000 |
|
|
5,000,000 |
The board of directors declared a 10% stock dividend on July 1, 2020, when the market value of the share was P100. The share dividend was issued on October 1, 2020 when the market value of the share was P120. The share has a par value of P50. The entity sustained a net loss of P2,500,000 for 2020. What amount should be reported as retained earnings on December 31, 2020?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning