Accounting The following shareholders' equity accounts are included in the statement of financial position of CONDESSA CO. on December 31, 2018. Preference share capital, 8%, P100 par (200,000 shares authorized, 60,000 shares issued and outstanding) 6,000,000 Ordinary share capital, P5 par (2,000,000 shares authorized, 600,000 shares issued and outstanding) 3,000,000 Share premium 3,750,000 Retained earnings 3,500,000 Total 16,250,000 During 2019, Condessa took part in the following transactions concerning equity. 1. Paid the annual 2018 P8 per share dividend on preference shares and a P2 per share dividend on ordinary shares. These dividends had been declared on December 31, 2018. 2. Purchased 81,000 shares of its own outstanding ordinary shares for P40 per share. 3. Reissued 21,000 treasury shares for land valued at P900,000. 4. Issued 15,000 preference shares at P105 per share. 5. Declared a 10% stock dividend on the outstanding ordinary shares when the shares are selling for P45 per share. 6. Issued the stock dividend. 7. Declared the annual 2019 P8 per share dividend on preference shares and the P2 per share dividend on ordinary shares. These dividends are payable in 2020. 8. Reported net income of P9,900,000 for the current year. What is the retained earnings balance (before appropriation for treasury shares) on December 31, 2019?
Accounting The following shareholders' equity accounts are included in the statement of financial position of CONDESSA CO. on December 31, 2018. Preference share capital, 8%, P100 par (200,000 shares authorized, 60,000 shares issued and outstanding) 6,000,000 Ordinary share capital, P5 par (2,000,000 shares authorized, 600,000 shares issued and outstanding) 3,000,000 Share premium 3,750,000 Retained earnings 3,500,000 Total 16,250,000 During 2019, Condessa took part in the following transactions concerning equity. 1. Paid the annual 2018 P8 per share dividend on preference shares and a P2 per share dividend on ordinary shares. These dividends had been declared on December 31, 2018. 2. Purchased 81,000 shares of its own outstanding ordinary shares for P40 per share. 3. Reissued 21,000 treasury shares for land valued at P900,000. 4. Issued 15,000 preference shares at P105 per share. 5. Declared a 10% stock dividend on the outstanding ordinary shares when the shares are selling for P45 per share. 6. Issued the stock dividend. 7. Declared the annual 2019 P8 per share dividend on preference shares and the P2 per share dividend on ordinary shares. These dividends are payable in 2020. 8. Reported net income of P9,900,000 for the current year. What is the retained earnings balance (before appropriation for treasury shares) on December 31, 2019?
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 81PSA
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Transcribed Image Text:Accounting
The following shareholders' equity accounts are included in the statement of
financial position of CONDESSA CO. on December 31, 2018.
Preference share capital, 8%, P100 par (200,000 shares authorized,
60,000 shares issued and outstanding) 6,000,000
Ordinary share capital, P5 par (2,000,000 shares authorized,
600,000 shares issued and outstanding) 3,000,000
Share premium 3,750,000
Retained earnings 3,500,000
Total 16,250,000
During 2019, Condessa took part in the following transactions concerning
equity.
1. Paid the annual 2018 P8 per share dividend on preference shares and a P2
per share dividend on ordinary shares. These dividends had been declared on
December 31, 2018.
2. Purchased 81,000 shares of its own outstanding ordinary shares for P40
per share.
3. Reissued 21,000 treasury shares for land valued at P900,000.
4. Issued 15,000 preference shares at P105
per
share.
5. Declared a 10% stock dividend on the outstanding ordinary shares when
the shares are selling for P45 per share.
6. Issued the stock dividend.
7. Declared the annual 2019 P8 per share dividend on preference shares and
the P2 per share dividend on ordinary shares. These dividends are payable in
2020.
8. Reported net income of P9,900,000 for the current year.
What is the retained earnings balance (before appropriation for treasury
shares) on December 31, 2019?
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