At the start of the current year, Mundo Company’s stockholders’ equity account appeared as follows:Common stock, P15 par value; authorized 200,000 shares; issued and outstanding, 150,000 shares2,250,000Paid-in capital in excess of par300,000Retained earnings5,000,000Total7,550,000 During the year, Mundo entered into the following transactions:May 1 Acquired 30,000 shares of its stock for P1,600,000.June 1 Reissued 15,000 treasury shares at P19 per share.July 1 Declared a cash dividend of P1.50 for holders on record on July 30 to be distributed on January of next yearOctober 1 Reissued 10,000 treasury shares at P16 per share.December 1 Retired the remaining treasury shares. The total stockholders’ equity reported in the current year statement of financial position is Group of answer choices6,395,0006,215,0006,192,5006,170,000

The shareholder's equity is effected by issuance of shares, purchase of treasury stock, retained…

Answered: At the start of the current year, Mundo…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

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Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

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At the start of the current year, Mundo Company’s stockholders’ equity account appeared as follows:

Common stock, P15 par value; authorized 200,000 shares; issued and outstanding, 150,000 shares	2,250,000
Paid-in capital in excess of par	300,000
Retained earnings	5,000,000
Total	7,550,000

During the year, Mundo entered into the following transactions:

May 1 Acquired 30,000 shares of its stock for P1,600,000.
June 1 Reissued 15,000 treasury shares at P19 per share.
July 1 Declared a cash dividend of P1.50 for holders on record on July 30 to be distributed on January of next year
October 1 Reissued 10,000 treasury shares at P16 per share.
December 1 Retired the remaining treasury shares.

The total stockholders’ equity reported in the current year statement of financial position is

Group of answer choices

6,395,000

6,215,000

6,192,500

6,170,000

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